Decomposition of Carbon Dioxide (CO2) Emissions in ASEAN Based on Kaya Identity

Abstract

ASEAN is a region with high carbon dioxide (CO2) emissions, accompanied by an increase in population, gross domestic product (GDP) and energy consumption. Population, GDP, and energy consumption can be linked to CO2 emissions through an identity equation called the Rich Identity. This research is based on Kaya identity to describe CO2 emissions to calculate the impact of population, economic activity, energy intensity and carbon intensity on CO2 emissions in ASEAN and 8 ASEAN countries (i.e., Indonesia, Malaysia, Singapore, Thailand, Philippines, Vietnam, Myanmar and Brunei Darussalam) from 1990 to 2017. The method used is the Logarithmic Mean Division Index (LMDI). The data used are from the International Energy Agency (IEA) and the World Bank. Four effects measured and main findings showed that population, economic activity and carbon intensity factor increased by 293.02 MtCO2, 790.0 MtCO2, and 195.51 MtCO2, respectively. Meanwhile, energy intensity effect made ASEAN's CO2 emissions decrease by 283.13 MtCO2. Regarding contributions to the increase in CO2 emissions in all ASEAN countries, the population effect increases CO2 emissions in all countries in ASEAN and the economic activity effect is also the same, except in Brunei Darussalam which makes CO2 emissions in this country decreased by 1.07 MtCO2. Meanwhile, the effects of energy and carbon intensity are different. The effect of energy intensity causes CO2 emissions in lower-middle income countries to decrease, while in upper-middle and high-income countries, it increases carbon emissions. In contrast to the effect of carbon intensity, that actually makes CO2 emissions increase in lower-middle income countries and reduces carbon emissions in upper-middle and high-income countries.