GHG emissions embodied in Macao's internal energy consumption and external trade: Driving forces via decomposition analysis

As a member of the Kyoto Protocol, Macao faces the enormous challenge to tackle with energy conservation and greenhouse gas (GHG) emission reduction. Though many studies have been devoted to understanding Macao's GHG emissions from energy consumption and external trade, an investigation of the underlying driving forces is still absent. Therefore, this study decomposed the energy-related emissions change and imbalance in embodied emissions of external trade during 2000-2011, respectively, by using the logarithmic mean Divisia index (LMDI) method. The economic scale effect and energy structure change were identified as the main driving factors of Macao's increasing energy-related emissions, while trade structure and embodied emission intensity contributed to make Macao a net importer of embodied emissions. However, some variations can be seen during the period concerned. Then the underlying reasons for the two decomposition results were further investigated. On account of the results and analysis, instructive policy implications can be put forward for Macao to better proceed with energy conservation and emissions reduction.