A New Improved Decomposition Model Based on Laspeyres Index: A Case of CO_2 Emission in China from 1996-2011

摘要

Due to some drawbacks of the Divisia inedex and its relevant decomposition methods, such as difficult affording accurate estimations in period-wise and cross-region decompositions with large discrete change data and involving logarithmic calculations [1]. This paper introduces a new decomposition index based on Laspeyres index (LI), leaving no unexplained residuals. It distributes interactive term among related factors according to different contribution rates of each factor which are related to the changes of these factors. An empirical illustration, decomposing changes in CO_2 emissions in China from 1996 to 2011 by both the proposed method (WLI) and Sun's Laspeyres index (SLI) method's time-series and period-wise methods, is carried out.