Identification of the key sectors producing CO2 emissions in Malaysia: application of Input–Output analysis

Othman, Jamal and Jafari, Yaghoob (2013): Identification of the key sectors producing CO2 emissions in Malaysia: application of Input–Output analysis.

Abstract

An important challenge for many countries in the quest toward a low carbon economy is the identification of the “key” economic sectors that are responsible for CO2 emissions and what policy initiatives might be appropriate to address these emissions taking into account the role played by the different productive sectors and their relationship with other sectors and atmospheric pollution. This paper applies the Input–Output analysis to identify the key economic sectors producing CO2 emissions in Malaysia from the production perspective. It allows us to identify the sectors that deserve more consideration for mitigation policies. Results indicate the primary key sectors that demonstrated strong distributive and total effects were dominated by the energy industry and transportation sectors. The choice of demand-or supply-side measures to mitigate the CO2 emissions is deliberated at the end of the paper.

• Item Type: MPRA Paper
• Language: English
• Keywords: Emission elasticities for Malaysia; Malaysian Input–Output analysis; Malaysian key sectors in carbon emissions; Carbon emission mitigation
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q58 - Government Policy

References

1.Zhang L, Hu Q, Zhang F. (2014). Input-Output Modeling for Urban Energy Consumption in Beijing: Dynamics and Comparison. PLoS ONE 9 (3): e89850. doi:10.1371/ journal.pone.0089850

2.Alcantara, V. and Padilla, E.(2006). An Input Output Analysis of “Key” Sectors in CO2 Emissions from a Production Perspective: An Application to the Spanish Economy. Working papers, Universitat Autonama of Barcelona, Spain. Online; http:// www.ecap.uab.es/repec/doc/wpdea0601.pdf

3.Rasmusen, P. (1956). STUDIES IN INTERSECTORAL RELATIONS. North-Holland, Amsterdam.

4.Hirschman, A.O. (1958). THE STRATEGY OF ECONOMIC DEVELOPMENT. Yale University Press, New Haven, CT.

5.Hayami, H., Nakamura, M., Suga, M., and Yoshioka, K. (1997). Environmental management in Japan: Applications of input-output analysis to the emission of global warming gases. MANAGERIAL AND DECISION ECONOMICS 18, 195–208.

6.Alcantara, V. and Padilla, E. (2003). “Key” sectors in final energy consumption: an input output application to the Spanish case. ENERGY POLICY, 31, 2003. pp.1673-1678.

7.Tarancon, M.A.M. and Del Rio, P.G. (2007). A combined input output and sensitivity analysis approach to analyze sector linkages and CO2 emissions.ENERGY ECONOMICS 29, pp. 578–597.

8.Reyes, Rachel C. (2009). Input Output Analysis of Key Sectors in Philippine Carbon Dioxide Emissions from a Production Perspective. DLSU BUSINESS & ECONOMICS REVIEW 19.1, pp.1–16.

9. Jodar, E. (2011). Key sectors in greenhouse gases emissions in Switzerland: An input-output approach. Online; http://depeconomiaaplicada.uab.cat/secretaria/trebrecerca/EJodar.pdf.

10.Malaysian Department of Environment. (2010). Retrieved from http://www.doe.gov.my/portal/.

11.Department of Statistic, Malaysia. (2011). Malaysian Input Output Table for 2005, Malaysia.

12.Department of Statistics, Malaysia. (2010). Petroleum And Natural Gas Statistics, Malaysia.

13.Ministry of Energy, Water and Communications, Malaysia. (2005). National Energy Balance.

14.Ministry of Environment and Natural Resources, Malaysia. (2010). Second National Communication To The UNFCC.