Decarbonization in New Zealand – where and how: a combination of input–output approach and structural decomposition analysis 

Abstract

In New Zealand, agriculture accounts for around 50% of total gross greenhouse gas emissions, energy production and use account for 40%. Given the limited possibility of reducing methane from the agricultural sector, we focus on the shape of, and factors influencing, the energy-related emissions profile. A single framework that combines environmental input–output analysis with structural decomposition analysis is established to systematically investigate driving forces shaping energy-related greenhouse gas emissions at national and sectoral levels. Results show that emission intensity, population, and consumption volume are dominant factors influencing shifting the energy-related emissions profile from 2007 to 2013. To achieve a net-zero-carbon economy, decarbonizing the transport sector is foremost and should be given priority. Policy directed at improving energy utilization in private consumption and exports, and the adoption and utilization of advanced technology in manufacturing, would contribute to achieving emissions reduction targets.

KEYWORDS:

• Energy-related emissions
• input–output analysis
• structural decomposition analysis
• carbon intensity
• production technology

Acknowledgements

We sincerely thank the editor and the anonymous reviewers for their constructive comments and valuable suggestions to improve the manuscript further. However, any shortcomings in this article are solely the authors' responsibility.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Correction Statement

This article has been corrected with minor changes. These changes do not impact the academic content of the article.

Notes

1 https://environment.govt.nz/what-government-is-doing/areas-of-work/climate-change/ets/.

2 https://www.theguardian.com/world/2019/nov/07/ardern-says-new-zealand-on-right-side-of-history-as-mps-pass-zero-carbon-bill.

3 https://environment.govt.nz/assets/publications/Aotearoa-New-Zealands-first-emissions-reduction-plan.pdf.

4 https://insideclimatenews.org/news/16122016/agriculture-methane-emissions-climate-change/.

5 National input-output tables in New Zealand are compiled based on the non-competitive imports assumption. A detailed discussion of non-competitive and competitive imports assumptions is available in the study by Su and Ang (2013).

6 At the time of writing, the national IO tables 2020, and the greenhouse gas inventory data were unavailable.

7 Final emissions after subtracting the number of emissions captured.

8 http://archive.stats.govt.nz/infoshare/.

9 Energy type contains three types of fossil fuels: solid, liquid, and gaseous. Solid fuels include three grades of coal: bituminous, sub-bituminous, and lignite. Liquid fuels include petroleum fuel, gasoline, and diesel. Gaseous fuels mainly refer to natural gas. Detailed information on fuels is available on the greenhouse gas inventory report (see MfE, 2021b, pp. 89–90).

10 https://www.ehinz.ac.nz/indicators/population-vulnerability/population-size-and-change/#new-zealand-has-a-relatively-low-population-density.

11 Source: https://www.mbie.govt.nz/building-and-energy/energy-and-natural-resources/energy-statistics-and-modelling/energy-statistics/electricity-statistics/.

Additional information

Funding

This work was jointly supported by the Energy Education Trust of New Zealand, the Northern Hemisphere Summer Research Scholarships, the Projects of Hubei Province Social Science Foundation [grant number 2021014], and the Projects of the National Social Science Foundation of China [grant number 22FGLB009].