Decomposition Analysis of CO2 Emissions from Electricity Generation in Nigeria

This paper investigates the factors that influences the change in CO 2 emissions from electricity generation in Nigeria. The Logarithmic Mean Divisia Index (LMDI) method of decomposition that was used. The main result shows that: (1) CO 2 emission from electricity generation decreased by 0.59 Mt. (2) Electricity efficiency decreased CO 2 emission by 2.33 Mt. (3) Electricity intensity decreased CO 2 emission by 21.85 Mt. (4) Economic activity increased CO 2 emission by 28.27 Mt. The result from the analysis shows that CO 2 emission increased in Nigeria. Electricity efficiency and intensity contributed to the reduction of CO 2 emission while economic activity has contributed to the increase in CO 2 emission in Nigeria. Since economic activities can not be reduced without affecting the economic performance of Nigeria, energy efficiency improvement would be an important option to reduce CO 2 emissions