Composition of Greenhouse Gas Emissions in Spain: an Input-Output Analysis

Extending the traditional input-output model to account for the environmental impacts of production processes reveals the channels by which environmental burdens are transmitted throughout the economy. In particular, the environmental input-output approach is a useful technique for quantifying the changes in the levels of greenhouse emissions caused by changes in the final demand for production activities. The inputoutput model can also be used to determine the changes in the relative composition of greenhouse gas emissions due to exogenous inflows. In this paper we describe a method for evaluating how the exogenous changes in sectorial demand, such as changes in private consumption, public consumption, investment and exports, affect the relative contribution of the six major greenhouse gases regulated by the Kyoto Protocol to total greenhouse emissions. The empirical application is for Spain, and the economic and environmental data are for the year 2000. Our results show that there are significant differences in the effects of different sectors on the composition of greenhouse emissions. Therefore, the final impact on the relative contribution of pollutants will basically depend on the activity that receives the exogenous shock in final demand, because there are considerable differences in the way, and the extent to which, individual activities affect the relative composition of greenhouse gas emissions. Keywords: Greenhouse emissions, composition of emissions, sectorial demand, exogenous shock.

Ecological and Economic Impacts within the Environmental Input-Output Framework

The environmental input-output approach reveals the channels through which the environmental burdens of production activities are transmitted throughout the economy. This paper uses the input-output framework and analyses the changes in Spanish emission multipliers during the period 1995-2000. By decomposing the global changes in multipliers into different components, it is possible to evaluate separately the economic and ecological impacts captured by the environmental input-output model. Specifically, in this study we distinguish between the effects on multipliers caused by changes in emission coefficients (the ecological impacts) and the effects on multipliers caused by changes in technical coefficients (the economic impacts). Our results show a significant improvement in the ecological impacts of production activities, which contributed negatively to changes in emission multipliers. They also show a deterioration in the economic impacts, which contributed positively to changes in emission multipliers. Together, these two effects lead to a small reduction in global multipliers during the period of analysis. Our results also show significant differences in the individual behaviour of different sectors in terms of their contribution to multiplier changes. Since there are considerable differences in the way individual sectors affect the changes in emission levels, and in the intensity of these effects, this means that the final effects will basically depend on the activity considered. Keywords: emission multipliers, multipliers' changes, ecological impacts, economic impacts.

An input-output analysis of the "key" sectors in CO2 emissions from a production perspective: an application to the spanish economy

Here we present an approach that allows the identification of the "key" productive sectors responsible for CO2 emission. For this purpose, we develop an input–output methodology from a supply perspective. We focus on the impact of an increase in the value-added of the different productive sectors on total CO2 emissions and we identify the productive sectors responsible for the increase in CO2 emissions when there is an increase in the income of the economy. The approach shows the contribution of the various sectors to CO2 emission from a production perspective and allows us to identify the sectors that deserve more consideration for mitigation policies. This analysis is complementary to the input–output analysis from a demand perspective. The methodology is applied to the Spanish economy.

Economic impacts of alternative water policy scenarios in the Spanish production system: an input-output analysis

The objective of this paper is to analyse the economic impacts of alternative water policies implemented in the Spanish production system. The methodology uses two versions of the input-output price model: a competitive formulation and a mark-up formulation. The input-output framework evaluates the impact of water policy measures on production prices, consumption prices, intermediate water demand and private welfare. Our results show that a tax on the water used by sectors considerably reduces the intermediate water demand, and increases the production and consumption prices. On the other hand, according to Jevons' paradox, an improvement in technical efficiency, which leads to a reduction in the water requirements of all sectors and an increase in water production, increases the amount of water consumed. The combination of a tax on water and improved technical efficiency takes the pressure off prices and significantly reduces intermediate water demand. JEL Classification: C67 ; D57 ; Q25. Keywords: Production prices; Consumption prices; Water uses; Water policy; Water taxation.

Income growth and atmospheric pollution in Spain: an input-output approach

The relationships between economic growth and environmental pressures are complex. Since the early nineties, the debate on these relationships has been strongly influenced by the Environmental Kuznets Curve hypothesis, which states that during the first stage of economic development environmental pressures increase as per capita income increases, but once a critical turning-point has been reached these pressures diminish as income levels continue to increase. However, to date such a delinking between economic growth and emission levels has not happened for most atmospheric pollutants in Spain. The aim of this paper is to analyse the relationship between income growth and nine atmospheric pollutants in Spain. In order to obtain empirical outcomes for this analysis, we adopt an input-output approach and use NAMEA data for the nine pollutants. First, we undertake a structural decomposition analysis for the period 1995-2000 to estimate the contribution of various factors to changes in the levels of atmospheric emissions. And second, we estimate the emissions associated with the consumption patterns of different groups of households classified according to their level of expenditure

Subsistemas input-output y contaminación: una aplicación al sector servicions y las emisiones de CO2 en España

El análisis de subsistemas input-output nos proporciona una herramienta de gran utilidad para estudiar la estructura productiva de los diferentes sectores que componen una economía. En el presente trabajo se ha desarrollado este análisis para estudiar las emisiones de CO2 relacionadas con el conjunto de ramas productivas que conforman el sector servicios. La descomposición de la producción total del subsistema servicios nos permite obtener las emisiones de CO2 relacionadas con diferentes efectos (escala, propio, feed-back y spill over). De los resultados obtenidos, destaca el diferente papel de las distintas ramas productivas de servicios. Las actividades de transporte serían las responsables de las mayores emisiones generadas directamente en el sector. Estas actividades son demandadas por el resto de sectores de la economía en mayor grado que su propia demanda final, teniendo mayor responsabilidad la producción vendida a otros sectores que la propia demanda final. No obstante, para el resto de actividades las emisiones directas e indirectas asociadas a la demanda final son mucho más importantes, por el fuerte efecto de arrastre sobre otras ramas de la economía que ejercen las actividades de servicios. A este respecto, destacan los servicios de Comercio, Hostelería, Inmobiliarias y servicios empresariales y la Administración pública, actividades que reciben escasa atención en el diseño de políticas orientadas a reducir las emisiones, pero que tienen una responsabilidad muy destacable en el fuerte aumento de emisiones experimentado en los últimos años.

Actividad económica, consumo final de energía y requerimientos de energía primaria en Cataluña, 1990-2005. Análisis mediante el uso de los balances energéticos desde una perspectiva input-output

Este trabajo analiza la evolución de los consumos finales de energía en Cataluña durante el periodo 1990-2005. En conjunto, los consumos finales de energía crecen por encima del crecimiento del PIB en términos reales. La disponibilidad actual de datos permite una desagregación en cinco actividades: sector primario; sector industrial; sector servicios; transporte; y sector doméstico. Los aumentos relativos más importantes se dan en los sectores servicios, doméstico y transporte. Es esta última actividad (que incluye el transporte privado y comercial) la que experimenta un mayor aumento en términos absolutos, hasta llegar a representar un consumo final de energía.

Actividad económica y emisiones de CO2 derivadas del consumo de energía en Cataluña, 1990-2005. Análisis mediante el uso de los balances energéticos desde una perspectiva input-output

A lo largo del trabajo hemos analizado, tanto desde una perspectiva agregada, como posteriormente con todo el detalle posible, la evolución experimentada por estas emisiones, teniendo en cuenta las limitaciones de información . Para hacerlo se han utilizado conceptos y precisiones metodológicas ampliamente utilizadas en la literatura científica sobre el tema. Del estudio realizado en la primera parte del trabajo resulta evidente que el importante crecimiento de las emisiones en Cataluña durante el periodo considerado, de un 60.1%, muy superior a la media española (50,5%), se explica como principal factor por el aumento en el PIB per cápita, con un crecimiento del 33,35% . El crecimiento demográfico también habría contribuido de forma importante al incremento en las emisiones totales, con un aumento del 10,5% de la población; sobre todo a partir de 1999, ya que en la década de los noventa la población se mantuvo estable con pocas.

The Total fiscal cost of indirect taxation: an approximation using Catalonia's recent input-output table

In this note we quantify to what extent indirect taxation influences and distorts prices. To do so we use the networked accounting structure of the most recent input-output table of Catalonia, an autonomous region of Spain, to model price formation. The role of indirect taxation is considered both from a classical value perspective and a more neoclassical flavoured one. We show that they would yield equivalent results under some basic premises. The neoclassical perspective, however, offers a bit more flexibility to distinguish among different tax figures and hence provide a clearer disaggregate picture of how an indirect tax ends up affecting, and by how much, the cost structure.

Economic impact of alternative policy measures implemented on the energy activities of the Catalan production system: an input-output analysis

The aim of the paper is to analyse the economic impact of alternative policies implemented on the energy activities of the Catalan production system. Specifically, we analyse the effects of a tax on intermediate energy uses, a reduction in the final production of energy, and a reduction in intermediate energy uses. The methodology involves two versions of the input-output price model: a competitive price formulation and a mark-up price formulation. The input-output price framework will make it possible to evaluate how the alternative measures modify production prices, consumption prices, private welfare, and intermediate energy uses. The empirical application is for the Catalan economy and uses economic data for the year 2001.

Sobre los subsistemas input-output en el análisis de emisiones contaminantes. Una aplicación a las emisiones de CH4 en Cataluña

En el presente trabajo se desarrolla un estudio de las emisiones de CH4 relacionadas con el sector agroalimentario catalán a través de un análisis alternativo, o al menos complementario, de subsistemas input-output. Una herramienta de gran utilidad para estudiar la estructura productiva de los diferentes sectores que componen una economía. La aplicación de esta técnica permite las descomposición del subsistema en distintos efectos en función de los vínculos intersectoriales existentes con el conjunto de las ramas productivas de la economía, dentro y fuera del subsistema. De los resultados obtenidos destaca la importancia de las relaciones intrasectoriales del subsistema agroalimentario, que muestra una relevante autonomía en cuanto a este tipo de emisiones respecto al resto de la economía. Esta característica orienta el tipo de políticas medioambientales a implementar con el objetivo de reducir el impacto atmosférico de dicha actividad.

Análisis multi-región input-output (MRIO) de emisiones de gases efecto invernadero (GEI) incorporado en el comercio. Un modelo birregional aplicado a Cataluña y el resto de España

El siguiente trabajo realiza un análisis regional y sectorial para el estudio de la emisiones de gases efecto invernadero (GEI) incorporadas en el comercio entre las regiones de Cataluña y el resto de España para el año 2001, estimando así el Balance Neto en GEI incorporado. El objetivo es el desarrollo de un metodología que nos permita realizar esta estimación de forma rigurosa, con la intención de efectuar un análisis comparativo de ambas estructuras productivas territoriales, en cuanto a la intensidad de emisión y el impacto de la demanda final de las regiones consideradas. Para este propósito se utiliza el marco metodológico del análisis input-output, en particular se aplica dos tipologías de modelos: el modelo básico o single-región y el multi-región, lo que nos permite la comparabilidad entre ambos, demostrando como el modelo MRIO (multi-región input-output) es el método más apropiado para dicho propósito, permitiendo, entre otras ventajas, analizar los vínculos interregionales e intersectoriales de las regiones consideradas. La incorporación de la técnica de la integración vertical o subsistemas, nos permite un enfoque alternativo para el Balance Neto resultante, no tenemos constancia de que este enfoque haya sido utilizado con anterioridad en los análisis MRIO aplicados al estudio de los impactos medioambientales incorporados en el comercio. Tampoco la tenemos sobre la aplicación de los MRIO de forma general para estos impactos a nivel interregional de la economía española. El principal resultado obtenido nos indica que aún teniendo Cataluña un importante superávit comercial con el resto de España, hemos comprobado la existencia de un importante déficit para la primera en cuanto a la polución incorporada en este comercio.

A comparison of input-output models: ghosh reduces to leontief (but "closing" ghosh makes it more plausible)

Ghosh's model is discussed in this paper under two alternative scenarios. In an open version we compare it with Leontief's model and prove that they reduce to each other under some specific productive conditions. We then move onto reconsidering Ghosh's model alleged implausibility and we do so reformulating the model to incorporate a closure rule. The closure solves, to some extent, the implausibility problem very clearly put out by Oosterhaven for then value-added is correctly computed and responsive to allocation changes resulting from supply shocks.

Structural decomposition analysis and input-output subsystems: An application to Spanish CO2 emissions

Analysis of gas emissions by the input-output subsystem approach provides detailed insight into pollution generation in an economy. Structural decomposition analysis, on the other hand, identifies the factors behind the changes in key variables over time. Extending the input-output subsystem model to account for the changes in these variables reveals the channels by which environmental burdens are caused and transmitted throughout the production system. In this paper we propose a decomposition of the changes in the components of CO2 emissions captured by an input-output subsystems representation. The empirical application is for the Spanish service sector, and the economic and environmental data are for years 1990 and 2000. Our results show that services increased their CO2 emissions mainly because of a rise in emissions generated by non-services to cover the final demand for services. In all service activities, the decomposed effects show an increase in CO2 emissions due to a decrease in emission coefficients (i.e., emissions per unit of output) compensated by an increase in emissions caused both by the input-output coefficients and the rise in demand for services. Finally, large asymmetries exist not only in the quantitative changes in the CO2 emissions of the various services but also in the decomposed effects of these changes. Keywords: structural decomposition analysis, input-output subsystems, CO2 emissions, service sector.

Water Reallocation in the Input-Output Model

Water reallocation between economic agents has been –and continues to be- the subject of a considerable amount of research. This paper proposes a method for evaluating how water is reallocated within the economy in response to changes in final demand and changes in the technical water needs of activities and consumers. The empirical application, which is for the Catalan economy, shows important asymmetries in the effects that exogenous inflows and changes in water technical requirements cause on water reallocation. In the process of water distribution, exogenous inflows mostly benefit agriculture and damage private consumers. On the other hand, increases in technical water requirements have negative effects on agriculture and positive effects on the other production activities. The results of the study suggest that agriculture is an important activity not only in terms of water distribution but also in terms of water reallocation due to changes in final demand and technical water needs. Keywords: Water reallocation, water distribution, exogenous shock, technical water needs.