Structural decomposition analysis of CO2 emission variability in Vietnam during the 1986-2008 period

• Main Author: Nguyen, Thi Kim Anh
• Format: Article
• Language: English
• Published: VNU 2014
• Subjects: Kaya identity; CO2 intensity; energy intensity
• Online Access: http://repository.vnu.edu.vn/handle/11126/4661
• Institution: Vietnam National University, Hanoi

The study employs structural decomposition approach based on Kaya identity and utilizes data from International Energy Agency (IEA, 2010) to analyze the relation between CO2 emission increase and GDP per capita, energy intensity of GDP, CO2energy intensity and population in Vietnam. The research brings about the following outcomes: The rapid GDP increase (y/p) and high CO2energy intensity (c/e) are two major factors causing high increase in CO2emission even though GDP energy intensity (- e/y) continuously declined and population growth was lower than 1.67% yearly in 1986-2008. The economic structural change and the shift of fuel mix were the main forces driving GDP growth while suppressing CO2emissions in Vietnam in 1989. The trend of c/e coefficient is due to the increase in fossil fuel dependency, economic structural change toward industrialization concentrating on manufacturing industries, a large inflow of FDI into manufacturing and construction industries without paying due attention to screening whether the acquired technology is environmentally friendly. Moreover, an increased number of vehicles and urbanization in Vietnam also boosted energy consumption. Consequently CO2emission had risen. Therefore, improvement of energy efficiency incorporated with a shift in energy mix to renewable energy, and applying energy-saving and environment friendly technology (EFT) are the most important steps to curb CO2emission.