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Assessing economic–environmental decoupling in the EU using sectoral Kaya decomposition

Bibliographic Data

ID13135198
AuthorsHasan Tutar (0000-0001-8383-1464, Azerbaijan State University of Economics), Dalia Streimikiene (0000-0002-3247-9912, Vytautas Magnus University), Grigorios L Kyriakopoulos (0000-0003-4875-8534, National Technical University of Athens, corresponding author)
Year2026
Volume11
Pages101812-101812
Publication date2026-03-21
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSustainable Futures (JOURNAL)
Journal identifiersISSN: 2666-1888
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.sftr.2026.101812
OpenAlexW7139984116
LanguageEN
References cited66

The European Green Deal aims to make Europe the first climate-neutral continent by 2050; however, progress remains uneven across economic sectors. While the energy sector demonstrates significant decarbonization, the transport and industry sectors face structural rigidities that hinder aggregate progress. This study examines the sectoral decomposition of CO2 emissions in the EU-27 from 1990 to 2022 to identify the specific drivers of these disparities. We employed the Kaya Identity decomposition method, combined with the Log-Mean Divisia Index (LMDI), to isolate the contributions of population, affluence, energy intensity, and carbon intensity to changes in emissions. Findings indicate that the energy sector achieved the most significant reduction in energy intensity (-34.6 %), primarily driven by fuel switching and the transition to renewable energy. Conversely, the transport sector exhibited a structural "rebound effect," where demand growth consistently outpaced efficiency gains, leading to a net increase in emissions. The decomposition analysis confirms that while technological improvements are visible, they are insufficient to offset the "scale effect" of economic activity in hard-to-abate sectors. Achieving the 2030 targets requires moving beyond aggregate goals to sector-specific industrial strategies, particularly for the transport and heavy industry sectors

Decomposition · Decoupling (probability · Divisia index · Energy intensity · Energy Sector · Offset (computer science · Renewable energy · Sectoral analysis · Tertiary sector of the economy · Energy, Environment, and Transportation Policies · Energy, Environment, Economic Growth · Environmental Impact and Sustainability

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