Using the LMDI Method to Analyze the Change in Greenhouse Gas Emissions in Turkish Sectors
In this study, CO2 emissions of the Turkish economy are decomposed for the 1998–2017 period for four sectors; agriculture, forestry and fishery, manufacturing industries and construction, public electricity and heat production, transport, and residential. The analyses are conducted for five fuel types; liquid, solid, gaseous fuels, biomass, and other fuels. In decomposition analysis, Log Mean Divisia Index (LMDI) method is used. The analysis results point out that energy intensity is one of the determining factors behind the change in CO2 emissions, aside from economic activity. The fuel mix component, especially for the manufacturing industries and construction sector, lowers CO2 emissions during the crisis periods when the economic activity declines. Mainly, it is found that changes in total industrial activity and energy intensity are the primary factors determining the changes in CO2 emissions during the study period. Among GDP sectors, manufacturing industries and construction and public electricity and heat production are the two sectors that dominate the change in CO2 emissions. Additionally, the residential and transport sectors’ contributions have gained importance during recent years. Among the manufacturing industries and construction, the non-metallic minerals sector contributes to CO2 emissions, followed by the chemicals sector.