Impact of asset intensity and other energy-associated CO 2 emissions drivers in the Nigerian manufacturing sector: A firm-level decomposition (LMDI) analysis

The study considered the impacts of asset intensity and other energy-associated emissions drivers in the Nigerian manufacturing sector from 2010 to 2020. The Logarithmic Mean Divisia Index (LMDI) was used to explore the driving factors of emissions: asset intensity, economic output, economic structu...

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Bibliographic Details
Published inHeliyon Vol. 10; no. 7; p. e28197
Main Authors Abam, Fidelis I, Inah, Oliver I, Nwankwojike, Bethrand N
Format Journal Article
LanguageEnglish
Published England 15.04.2024
Subjects
CO2 emissions
LMDI
Manufacturing sector
Driving factors
Firm-level
Nigeria
Decomposition analysis
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Summary:The study considered the impacts of asset intensity and other energy-associated emissions drivers in the Nigerian manufacturing sector from 2010 to 2020. The Logarithmic Mean Divisia Index (LMDI) was used to explore the driving factors of emissions: asset intensity, economic output, economic structure, energy intensity, energy mix, and carbon emission coefficient. From the results, the emissions decreased from 7.49 in 2010 to 3.22 in 2020. Furthermore, among the emissions drivers, the energy mix effect increased emissions by 0.50 , followed by asset intensity (0.29 ) and economic structure (0.11 . The energy intensity, economic output, and emission coefficient effects inhibited emissions by -4.64 , -0.42 , and -0.01 respectively. The contribution of the subsectors' emissions shows that the Other Manufacturing subsector emitted 14.62 , while Chemical and Pharmaceutical emitted 14.61 , Food, Beverages and Tobacco, 7.55 , Textile, Apparel, and Footwear, 6.63 , Basic Metal and Iron and Steel, 5.15 , Plastic and Rubber Products, 2.99 , Agro-Allied, 2.71 , Oil Refining, 2.01 , and Pulp and Paper Products, 1.76 . The results indicated that the effect of asset intensity on emission growth is significant and should not be overlooked. Likewise, the effects of emission drivers were found to impact differently across the subsectors. The latter suggests that firm-specific indicators in the respective subsectors should be one of the primacies during policy development since the driving factors of emissions fluctuate across the subsectors.
ISSN:2405-8440
2405-8440
DOI:10.1016/j.heliyon.2024.e28197