Driving Factors of Carbon Emissions in G20 Countries: A Weighted Average Structural Decomposition Approach

As a major part of global development governance, G20 countries account for 80% of global carbon emissions. In order to achieve the goal of "carbon neutrality" proposed by the United Nations, it is important to compare and analyze the drivers of carbon emissions in G20 countries and provide recommendations for their carbon emission reduction. Based on the data of 17 G20 countries in the EORA database, this paper compares the drivers of carbon emissions of each country from 1990-2021 using weighted average structural decomposition and K-mean model. This paper focuses on four drivers, including carbon emission intensity, final demand structure, export structure, and production structure. Carbon emission intensity and final demand structure are the main factors of carbon emission reduction, and the other two factors have little influence. Among the G20 countries, the UK is in the first category because it does the best job on the four factors of carbon emissions, yet Italy is in the last category because it does not take full advantage of the four factors. Therefore, improving supply energy efficiency and adjusting demand, export, and industrial structure have become important tools for countries to transform and achieve carbon neutrality.