The GHG Emissions Generating Capacity by Productive Sectors in the EU: A SAM Analysis

Abstract

In this paper, we evaluate the generating capacity of Greenhouse Gases (GHG) emissions that all productive sectors have in the EU-27 of 2010. The analysis is performed using the social accounting matrices (SAMs) of each Member State (MS) and evaluating the interactions among industries, productive factors, and households with respect to the aggregated SAM for the EU-27. The main advantages and contributions of this study with respect to the existing literature are two. First, the availability of the whole income distribution detailed in the SAMs and second, their comparability across countries. The aim of this research is to better understand how productive sectors may damage the environment depending on their productive structure and final demand, particularly in a period of economic recession, which is very relevant in the context of COVID-19 and the near future. The results show that intersectoral connections are very diverse by MS and consequently, there are more differences in the generation capacity of GHG emission by country than by sector. Our results reinforce the idea of involving regional and national governments in the design and implementation of EU abatement strategies, taking into account the peculiarities of each region.