Does combined heat and power mitigate CO₂ emissions? A cross-country analysis

Combined heat and power (CHP), which produces both heat and electricity at the same time, is so efficient that it can reduce energy use and emit less carbon dioxide (CO₂) than conventional fossil fuel use. This article attempts to look empirically into the impact of CHP share in total electricity generation on CO₂ emissions in a cross-country context. Data from 35 countries during the period 2009-2015 are used. For this purpose, the variable of CO₂ emissions is regressed on three variables of constant, gross domestic product, and CHP share using two robust estimators. The results show that the level of CHP share of a country affects the level of its CO₂ emissions negatively. That is, CHP leads to less CO₂ emissions.