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Structural decomposition analysis of greenhouse gas emissions in Norway 1990-2002

Asuka Yamakawa, Glen Peters

The goal of this study is twofold: first, to quantify the economic factors driving greenhouse gas emissions in Norway, and second, to assess if random variations in the data affect the results. We use structural decomposition analysis (SDA) with chained constant price input–output tables and environmental extensions. We construct three sets of constant-price data using a smoothing algorithm to remove random variations from the data, and find that the results of the SDA are relatively robust to these variations. The production of exports was responsible for around 70% of the growth in greenhouse gas emissions from 1990 to 2002, household consumption of domestically produced products for about 15%, government 10%, with the remainder due to gross capital formation. The dominance of exports in the emissions growth may make future greenhouse gas mitigation challenging in Norway, particularly considering that the exports are dominated by oil and gas production.

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