Factorizing the Changes in CO₂ Emissions from Indian Road Passenger Transport: A Decomposition Analysis

The main aim of this paper is to analyse the role of different factors responsible for CO₂ emission from Indian road passenger transport with the help of Logarithmic Mean Divisia Index over the period of 1971-2011. CO₂ emission increase is decomposed into five major factors - emission coefficient, transport energy intensity, transport activity, economic growth, and population. Findings suggest that economic growth, transport activity and population have a significant positive role in increasing CO₂ emission from road passenger transport, whereas energy intensity plays a negative role in CO₂ emission increase. Emission coefficient has also a negative role in CO₂ emission increase during all the periods except during 1971-81. Therefore, emission coefficient and energy intensity are the two most important factors for policy design and implementation to reduce CO₂ emission from the sector.