Energy-Related Carbon Dioxide Emissions from Economic Growth in Poland: Decomposition and Decoupling Analysis
Purpose: This paper addresses the conditions behind energy-related carbon dioxide emissions in Poland following its accession to the European Union. The study analyzed some energy, fossil fuel, economic, and environmental indicators, such as energy use, CO2 emissions, driving factors and decoupling elasticity status. Design/Methodology/Approach: This article is a contribution to the study of factors influencing climate change related to energy use. The analysis was based on descriptive statistics and decomposition methods. The Logarithmic Mean Divisia Index (LMDI), one of the most commonly used forms of index decomposition and index decoupling analysis, was used to identify the determinants of carbon dioxide emissions. Findings: As the results showed, between 2004 and 2020, energy consumption in Poland grew at an average annual rate of 0.8% while fossil-fuel carbon emissions declined at 0.7% per year. Energy intensity was found to be the key force behind the reduction in CO2 emissions, whereas rapid economic growth was the main driver of CO2 emissions. While other factors, i.e. carbon intensity, energy mix and population, also contributed to reducing the emissions, they had a much smaller if not marginal effect. In turn, the decoupling elasticity analysis showed that Poland mostly witnessed strong decoupling states, which means a strong decoupling of CO2 emissions from economic growth. Furthermore, it follows from the decoupling analysis that strong decoupling statuses prevailed throughout the study period, suggesting that the changes in the factors considered significantly contributed to reducing CO2 emissions. However, the decoupling elasticity indices reveal the presence of an adverse trend. The above means that Poland witnesses a decline both in the strength of decoupling emissions from economic growth, and in the efficiency of policies and measures designed to reduce CO2 emissions. Practical implications: These considerations could help develop an active energy policy focused on climate neutrality. Originality/value: This document broadens and updates knowledge on the determinants of CO2 emissions in Poland. Also, these findings can provide grounds for accelerating energy transformation processes in Poland.