Decomposing the Influencing Factors of CO2 Emissions of Iranian Manufacturing Industries

In order to reduce the greenhouse gases emissions، the recognition of influencing factors of emission of such gases is required. One of the most important greenhouse gases is Carbon Dioxide. The industry sector، by having about 20 percent، plays a significant role in emission of Carbon Dioxide. This study investigates the major factors of Carbon Dioxide emissions in Iranian industry subsectors during 2000-2007. For that purpose، using LMDI method in additive form، the Carbon Dioxide emissions of the Iranian two digit ISIC manufacturing industries decomposed to activity، structure، energy intensity، energy mix and emission factors. The results indicate that the activity effect is the major factor of increasing Carbon Dioxide and in contrast، the effect of energy intensity has a significant impact on reducing Carbon Dioxide emissions. The structure effect has not significant influence on the reduction of Carbon Dioxide emissions. Therefore، to prevent the increasing of pollution emissions of industries، there should be incentive policies to increase energy efficiency and structural changes towards cleaner industries. Also، the increasing of the natural gas in fuels، and improvement of fuel quality should be attended in development programs.