DECOMPOSITION AND DECOUPLING ANALYSIS OF NIGERIA INDUSTRIAL EMISSION FROM LMDI AND TAPIO MODELS: CASE STUDY OF THE CEMENT INDUSTRY

Abstract

This study investigates the relationship between carbon dioxide emissions and economic growth in Nigeria's cement industry from 2000 to 2019, using the Logarithmic Mean Divisia Index (LMDI) and Tapio decoupling models. The results reveal that carbon dioxide emissions increased by 145% over the study period, while economic growth, measured by gross output, increased by 235%. The LMDI analysis identifies energy intensity as the primary driver of carbon dioxide emissions, contributing 67.2% to the total increase, followed by industrial structure (21.5%). The Tapio decoupling model indicates that the industry experienced strong decoupling of carbon dioxide emissions from economic growth in 45% of the studied years but weak decoupling in 55%. The study's findings have important implications for policymakers and industry stakeholders seeking to reduce carbon dioxide emissions from Nigeria's cement industry while promoting sustainable economic growth.