MANUFACTURING SECTOR CARBON-DIOXIDE EMISSIONS IN 9 OECD COUNTRIES, 1973-87 - A DIVISIA INDEX DECOMPOSITION TO CHANGES IN FUEL MIX, EMISSION COEFFICIENTS, INDUSTRY STRUCTURE, ENERGY INTENSITIES AND INTERNATIONAL STRUCTURE

The reduction in energy-related manufacturing carbon dioxide emissions for nine OECD countries for 1973-87 is analysed. Carbon dioxide emissions are estimated from energy use data. The emphasis is on carbon dioxide intensities, defined as emissions divided by value added. The overall manufacturing carbon dioxide intensity was reduced by 42% in the period. Four fuels are specified together with six subsectors of manufacturing. A Divisia index approach is used to evaluate the contribution to reduced carbon dioxide intensity from different components. The main contribution to reduced carbon dioxide intensity is from the general reduction in manufacturing energy intensity, most likely driven by economic growth and increased energy prices, giving incentives to invest in new technology and industrial processes. There is also a significant contribution from reduced production in the most carbon dioxide intensive subsectors, and a contribution from higher efficiency in electricity generation together with a larger nuclear power share at the expense of oil.