Energy Efficiency and Environmental Emissions Reduction: A Factor Decomposition Analysis

R.M. Shrestha and T.A. Le (Thailand)


integrated resource planning, energyefficiency, energy and the environment


This paper analyzes the role of selected supply- and demand-side energy efficient technologies in the power sector development in a developing country using a long term integrated resource planning (IRP) framework. It also analyzes the factors affecting the changes in total CO2 and SO2 emission intensities of power generation during the planning horizon using the Divisia decomposition approach. The study shows that the use of efficient demand-side technologies would reduce power sector emissions of CO2, SO2 and NOx by about 8.9%, 6.6% and 9.7%, respectively during 2005-2019. Furthermore, the study shows that CO2 emission intensity would be reduced at an average annual rate of 5.5% during 2005-2019 in the business as usual case and by 4.5% in the energy efficiency improvement case. The decline in CO2 emission intensities would take place mainly due to generation efficiency improvements in the business-as-usual (BAU) case, and due to the changes in both power generation efficiencies and generation mix in the energy efficiency improvement (EEI) case.

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