Decomposition Analysis of CO2 Emissions in Greece from 1996 to 2020

To meet Greece’s commitments under the Kyoto Protocol (KP) and the UN Framework Convention on Climate Change (UNFCCC), it’s crucial to dissect the primary influencers of its greenhouse gas emissions. This study utilized the logarithmic mean Divisia index method in its additive form to delve into the main drivers behind carbon dioxide emissions in Greece from 1996 to 2020. The analysis revealed that the primary catalyst for the rise in CO2 emissions was the growth in GDP. Conversely, advancements in energy efficiency, as indicated by a decrease in energy intensity, played a significant role in reducing CO2 emissions. While population growth contributed to an increase in emissions, a decline in emissions intensity showcased a reduction in emissions per unit of output or consumption. The period from 1996 to 2020 witnessed a 38% change in emissions, demonstrating the effectiveness of Greece’s environmental policies. These findings highlight the pressing need for a sustained focus on enhancing renewable energy sources (RES) penetration and ensuring comprehensive attention across all sectors to further reduce emissions.