Carbon Emissions Index Decomposition Analysis of the Akwa Ibom State Transportation Sector

Abstract

This study presents the index decomposition analysis of carbon emissions in Akwa Ibom State transportation sector. The primary aim of the paper was to determine the energy consumption in the transport sector, evaluate of the economic growth of the energy consumption in the transport sector and presents the carbon emissions decoupling which results from energy consumption using Log Mean Divisia Index (LMDI) decoupling method in the transportation sector. An Index Decomposition Analysis (IDA) with Log Mean Divisia Index (LMDI) model was applied in the study. The LMDI analysis is a form of index decomposition analysis which incorporates energy changes in logarithmic mean fashion, accounting for changes regardless of emissions flow direction. The results from the emissions decoupling shows the relative contribution of the changes due to the parts of index decomposition. For the years (1990 to 2020) considered, the changes in emissions are predominantly observed in the activity effect. For the years 1993 through 2015, the activity indicator shows a large contribution to accumulation of emissions. Only the years 1991 and 1992 recorded a reduction in the overall emissions from the activity effect. In general, the trend of the emissions over the years for the transportation sector increases. On the other hand, the highest annual drop in emissions occurred in 2020, which was connected with the COVID 19 pandemic, lock down, economic crisis and recession. The study recommended that there should be improvement in energy efficiency practice and implementation of energy efficiency policies in the power sector by the Nigerian Government