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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.