Factors Affecting CO2 Emissions from Direct Energy Household Consumption in Vietnam

The energy sector is pivotal in Vietnam’s commitment to achieving net-zero emissions by 2050. This study employs a combination of Structural Decomposition Analysis (SDA) and decoupling approaches based on data from Vietnam’s energy statistics and the Vietnam Living Standards Survey (VHLSS) for 2016, 2018, and 2020. The primary aim is to elucidate the effects of direct energy consumption by household groups on CO2 emissions, examine factors affecting emissions, and clarify the relationship between CO2 emissions from household energy consumption and economic growth in Vietnam. Research results underscore that household groups make considerable use of electricity and Liquefied Petroleum Gas (LPG), simultaneously reducing the proportion of firewood, rice husk, sawdust, agricultural by-products and other fuels. The decrease in energy intensity emerges as the primary factor in lowering household emissions, while population growth and economic efficiency exert the opposite effect. Additionally, the research reveals disparities in emissions between urban and rural areas, similarly among household groups within the given location. Despite maintaining a robust decoupling status between emissions from household consumption and economic growth, unsustainable risks persist, particularly with the increase in electricity demand. The study also highlights the uneven impact of the COVID-19 epidemic on CO2 emissions across household groups. Drawing upon these findings, several recommendations are proposed to control CO2 emissions from direct energy household consumption to facilitate the most effective household decarbonisation process while ensuring sustainable economic growth in Vietnam.