Decomposition analysis of CO2 emissions from passenger cars: The cases of Greece and Denmark

The paper presents a decomposition analysis of the changes in carbon dioxide (CO2) emissions from passenger cars in Denmark and Greece, for the period 1990–2005. A time series analysis has been applied based on the logarithmic mean Divisia index I (LMDI I) methodology, which belongs to the wider family of index decomposition approaches. The particularity in road transport that justifies a profound analysis is its remarkably rapid growth during the last decades, followed by a respective increase in emissions. Denmark and Greece have been selected based on the challenging differences of specific socio-economic characteristics of these two small EU countries, as well as on the availability of detailed data used in the frame of the analysis. In both countries, passenger cars are responsible for half of the emissions from road transport as well as for their upward trend, which provokes the implementation of a decomposition analysis focusing exactly on this segment of road transport. The factors examined in the present decomposition analysis are related to vehicles ownership, fuel mix, annual mileage, engine capacity and technology of cars. The comparison of the results discloses the differences in the transportation profiles of the two countries and reveals how they affect the trend of CO2 emissions.