Investigating the Effects of Technology and Final Demand Structure on CO2 Emission

As far as Environmentally Extended Input‐Output (EEIO) and CO2 emissions reduction are concerned, the question is: what are the impacts of final demand structure and technology on CO2 emissions in Iran? In order to answer this question, the current research adopts a two-step approach:(1) first, CO2 emissions are estimated for 29 economic sectors; (2) then, using Structural Decomposition Analysis(SDA), driving forces of emission growth during 1999-2011 are examined. The results show that power plants play a major role in CO2 emissions in Iran. According to this technique, final demand structure (with contribution of 187%) and technology (with contribution of -87%) which increased and decreased CO2 emissions, respectively, during the study period in Iran, brought about changes in emissions. Also, the results suggest that, among the final demand components, household consumption expenditures had the largest share in CO2 emissions. Thus, it is recommended to increase the efficiency of combustion systems at power plants, develop clean and inexpensive technologies, propose policies to enhance energy efficiency in the household sector, and promote public awareness to optimize energy consumption