A bottom-up decomposition analysis of energy-related CO2 emissions in Greece

This paper presents a decomposition analysis of CO2 emissions in Greece for the period 1990–2002 split into two equal time intervals. The proposed analytical procedure relies on the refined Laspeyres model and follows a bottom-up approach starting from the major energy consuming sectors and aggregating the obtained effects for estimating their relative impact at the country level. Different indicators—either monetary or physical—are used in each sector in order to more accurately approximate the real activity related with energy consumption and emission generation. In addition, the analysis is extended as to take into account the effect of the varying electricity mix in the overall responsibility of the final demand sectors. The results of the analysis explain the observed increase in CO2 emissions and point on policy priorities in order for Greece to comply with the Kyoto target.