An LMDI decomposition analysis of carbon emissions in the Thai manufacturing sector

During the last two decades CO2 emissions increased rapidly along with the growth of production and energy use in the industrial sector in Thailand. We use the Logarithmic Mean Divisia Index (LMDI) method to decompose the source of changes of CO2 emission level and CO2 emission intensity of the sector for the period 2005-2017. The results show that during this period, on average the amount of CO2 emissions and the CO2 emission intensity increased annually. The structural change effect helped reduce both the amount of CO2 emissions and the emission intensity. However, the increased energy intensity of individual industries led to an increase in the amount of CO2 emission and CO2 emission intensity. The study thus calls for policies to reduce energy intensity of firms in the manufacturing sectors in order for Thailand to benefit from industrial growth without having to incur greater polluting emissions. (C) 2019 Published by Elsevier Ltd.