The driving factors of CO2 emissions from electricity generation in Greece: an index decomposition analysis

The present paper investigates the driving factors of CO2 emissions from electricity generation in Greece during the period 2005-2012 and compares the revealed trends with those recorded in EU-28. The analysis focuses on the following determinant factors: a) economic growth; b) electricity intensity of the economy; c) electricity trade; d) fuel mix; e) efficiency of electricity generation. By using a decomposition analysis based on the Logarithmic Mean Divisia Index-I (LMDI-I) method, the effect of each factor is calculated under the ceteris paribus assumption. The obtained results show that in times of economic growth, changes in the fuel mix and the more efficient use of electricity in the economy have retained the upward trend of emissions, while the economic downturn has driven emissions down but at the same time it contributed to a less efficient use of energy resources in power generation and in the final demand sectors.