Decoupling of energy-related CO2 emissions from economic growth: a case study of Bangladesh

The objective of this paper is to appraise the decomposition along with decoupling elements that affected the nexus between energy-related CO2 emissions and the economic development of Bangladesh by applying the logarithmic mean Divisia index and Tapio model. The paper provides an effective policy that will enable Bangladesh to improve its environmental aspect and stimulate sustainable economic development. The analysis comprehends three economic sectors, and the decoupling determinative is fragmented into five elements. The results revealed that Bangladesh achieved weak decoupling throughout the analysis cycles except between the cycles of 1990-1991, 1992-1993, 1995-1996, 1997-1999, 2003-2004, 2012-2013, and 2015-2017 in which a strong decoupling occurred. From the disintegration of various components' frame of reference, it can be seen that change in scale effect causes a substantial increase in carbon emissions and economic structure together, whereas energy intensity plays an imperceptible role in the increase in carbon emissions. On the other hand, the emission is the only element that is responsible for a decrease in carbon emissions. From a comparative sectoral analysis point of view, scale effects are liable for increasing carbon emissions in all three sectors. Hence, precautionary information campaign should be taken to communicate a comprehensive countrywide moderation strategy and appropriate modification engagements for initiating a low-carbon community.