Decomposition Analysis of the Carbon Emissions of the Manufacturing and Industrial Sector in Thailand

Abstract

Since the 1990s, CO2 emissions have increased steadily in line with the growth of production and the use of energy in the manufacturing sector in Thailand. The Logarithmic Mean Divisia Index Method is used for analysing the sources of changes in CO2 emissions as well as the CO2 emission intensity of the sector in 2000–2018. On average throughout the period, both the amount of CO2 emissions and the CO2 emission intensity increased each year relative to the baseline. The structural change effect (effect of changes of manufacturing production composition) reduced, but the intensity effect (effect of changes of CO2 emissions of individual industries) increased the amount of CO2 emissions and the CO2 emission intensity. The unfavourable CO2 emission intensity change came from the increased energy intensity of individual industries. The increased use of coal and electricity raised the CO2 emissions, whereas the insignificant change in emission factors showed little impact. Therefore, the study calls for policies that decrease the energy intensity of each industry by limiting the use of coal and reducing the electricity used by the manufacturing sector so that Thailand can make a positive contribution to the international community’s effort to achieve the goal of CO2 emissions reduction.