Carbon and Energy Intensity of the USA and Germany. A LMDI Decomposition Approach and Decoupling Analysis.

The present study investigates the driving factors of energy and carbon intensity of the great economies of the USA and Germany, being two economies with different structures and dependencies on energy while they are among the world’s economic and geopolitical leading players. Both Decoupling and Decomposition Analysis are applied to identify and rank factors defining Carbon and Energy Intensity during the period from 2000 to 2017, with the so-called financial crisis being within this period. The decoupling analysis denotes that these advanced economies should enhance their decoupling efforts, while decomposition analysis confirms the leading role of energy intensity in CO 2 emissions, next the income and the energy mix emerge as important factors with population trend to be an additional factor only in the USA. Finally, conclusions and relevant policy suggestions are presented.