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International Trade and Shared Environmental Responsibility by Sector. An Application to the Spanish Economy. Cadarso, María-Ángeles; López, Luis-Antonio*, Gómez, Nuria; Tobarra, María-Ángeles Universidad de Castilla-La Mancha Facultad de Ciencias Económicas y Empresariales, Plaza de la Universidad n. 2, 02071, Albacete (Spain) Phone +34 967 599 200 Ext. 2382 . Fax +34 902 204 130. E-mail: [email protected], [email protected], [email protected], [email protected] *Corresponding author Abstract The aim of this paper is to define a shared responsibility criterion for analysing the impact of international trade on CO2 emissions from different sectors. With the approach proposed it is possible for sectors in a country to account for only a part of the emissions associated with exported goods and imported goods. The agents considered as responsible for pollution are sectors of activity by rows, direct emissions linked to production and sectors by columns, direct and indirect emissions linked to consumption of inputs and the countries that trade with these sectors. The criterion is applied to the Spanish economy for the period 2000 to 2005, and proves useful for determining what economic policies may be suitable for mitigating anthropogenic impact on the environment. Key words: CO2 emissions, international trade, shared responsibility between producer and consumer. 1 1. Introduction The control and reduction of CO2 emissions generated by a country or a geographical area, and policies to achieve that control, call for the establishment of an adequate emission assignation criterion (Ferng, 2003, Peters and Hertwich, 2008a, b). In the Kyoto Protocol emissions are assigned to the country where they are produced (IEA, 2001), following the so-called producer’s responsibility approach. According to this principle, a country is responsible for the pollution emitted within its territory when goods, services or energy are produced, independently of whether they are then consumed inside or outside the country. Following this criterion an emissions target is set up for each country and signatory countries are urged to establish mechanisms to meet it. According to this idea, Directive EC/87/2003 sets up a European emissions trading market intended to meet the EU’s commitment as a signatory of the Kyoto Protocol. This is a mechanism for efficiently controlling EU emissions up to 2012, in which emissions are allocated among chosen sectors following a territorial criterion. However, the producer’s responsibility principle has some drawbacks that can affect the degree of commitment by countries to achieving their final targets, i.e. a reduction in pollutant emissions. The growth of international trade, one of the consequences of globalisation, boosts the transference of pollution through trade flows, since it is incorporated into exports and imports. Due to the different pollution intensity incorporated into exports and imports, a country can transfer or absorb foreign pollution (Antweiler, 1996, Muradian et al., 2002). Countries can take two different approaches in commiting to Kyoto emission targets: withdrawing highly-pollutant production processes or moving them to other countries and then importing the resulting commodities1. This procedure results in an increase in total worldwide pollution when countries with less-polluting production technologies outsource production to morepolluting countries, especially if the new producer has not signed up to the Kyoto Protocol. This problem, carbon leakage through developed countries imports, is acknowledged by the Kyoto Protocol and has been analysed in depth in previous literature (Felder and Rutherford, 1993, IPCC, 2001, Paltsev, 2001, Peters and 1 Causes of offshoring, i.e. delocalisation of production to foreign countries, include cost reduction (mainly wage costs), economies of scale, access to new markets (for final products or raw materials), higher elasticity (Abraham & Taylor, 1996) and, especially importantly in our analysis, the existence of less restrictive environmental laws. 2 Hertwich, 2006, 2008a)2. Pollution also increases due to international trade in commodities, mainly intermediate inputs, that were previously sourced from the same geographical area (see Cadarso et al. 2010 for an analysis of this effect). 3 In December 2008 the European Commission endorsed a “Climate and Energy Package” aimed at regulating the market for emissions allowances from 2013 to 2020 in the European Union. This package also seeks to avoid the impact of that market on delocalisation of industry and, therefore, on carbon leakage. To that end, it seeks to modify emission allocation criteria by incorporating emissions associated with international trade in commodities. Emissions are allocated in regulated sectors under the territorial principle and the benchmarking mechanism, however when calculations are made for all EU countries and not for one particular country, the impact of trade within the EU is specifically considered. However, EU countries are not prevented from absorbing or transferring pollution via international trade with other countries that have not explicitly committed to reducing their emissions. For that reason, the Directive establishes that those industries that by the end of 2009 are considered at risk of suffering carbon leakage may not auction their emission allowances, as other sectors of activity are permitted to do, but can receive greater free allocations. Moreover, the European Commission also proposes to include a system of European pollution allowances for commodity importers in sectors at risk of carbon leakage. This is a novel approach to legislation at international level because it includes imports within a country’s responsibility (it would be a global responsibility criterion, since it includes emissions associated with a country’s production and consumption). The principle of consumer responsibility, defined by Munksgaard and Pedersen (2001), based on Gay and Props (1993), seeks to deal with the problem of emission leakage and the impact of international trade on pollution. Under this principle, a country is responsible for pollution associated with its own energy and commodity consumption, independently of whether commodities are produced within the country or imported. As a result, consumer responsibility is calculated by taking producer responsibility, adding 2 See, for example, Peters & Herwitch (2008a), who find most Annex B countries to be net CO2 importers. 3 We can also mention a different problem related to the producer criterion which is outside the scope of this pape: the difficulty of allocating emissions from international bunkers (UNFCCC, 2005, Faber et al., 2007, Peters and Hertwich, 2008a, b). 3 emissions associated with imports and removing emissions incorporated into exports. This principle allows industries and consumers to guide economic development and its impact on environment through their decisions, reducing their ecological footprint when they demand products (goods, services or energy) that are low in emissions (Muradian et al., 2002). As a result, the criterion prevents a country from transferring part of its pollution as a consumer, though it still transfers responsibility when goods are exported. It should also be mentioned that the criterion of consumer responsibility suffers from some drawbacks, such as trespassing on the jurisdictional limits of national power when the importer country is considered as responsible for emissions associated with imports. The criterion of shared responsibility is a different way of allocating CO2 emissions. It entails distributing responsibility between producers and consumers, and is thus an intermediate procedure between the producer and the consumer criteria mentioned above. Its main advantage is to commit industries, end consumers and/or countries to reducing emissions related to both production and consumption. Two different lines of investigation analyse the best way to calculate shared responsibility. One of them allocates responsibility for pollutant emissions between countries, taking international trade flows as a reference. The other allocates responsibility for emissions within a single country among participating agents. The first method was developed by Ferng (2003) and Peters (2008), and it considers a country to be responsible for a part of the emissions associated with its exports and also to a part of those associated with its imports. This requires a parameter to be established that allows responsibility for emissions associated with trade to be distributed in an intermediate way between the producer and the consumer. The second procedure was developed in Bastianoni et al. 2004, Gallego and Lenzen (2005), Lenzen et al. (2007) and Rodrigues et al. (2008). It seeks to distribute responsibility for the total emission in an economy between different economic agents, final goods consumers and also workers and firms. In the context described, our main aim is to design a criterion for shared responsibility that allows us to identify the sectors of activity that are mainly responsible for 4 emissions4 from an economy within its frontiers or abroad, so that its application can guide economic policies focused on mitigating anthropgenic impact on the environment. The methodology developed enables a distinction to be drawn between two concepts of shared responsibility per activity sector: a) shared responsibility per row (in the inputoutput context), which quantifies how international trade affects direct emissions from a sector when producing, adding part of the direct emissions linked to exports and imports; b) shared responsibility by columns, which entails a criterion where sectors are responsible for all the direct and indirect emissions linked to the purchase of inputs that cover domestic demand and part of the emissions linked to international trade. For both rows and columns the stakeholders who share responsibility are sectors, as producers and consumers (intermediate input purchasers), and the countries that trade with those sectors. This method is empirically applied to the Spanish economy for 2000 and 2005, broken down into 46 sectors of activity. Since this is the first study to calculate shared responsibility by sector of activity using real data for an economy, the results are useful in evaluating the possibilities for applying in practice the allocation criterion defined. The paper continues as follows: Section 2 reviews the relevant literature and discusses in depth the advantages and drawbacks of the different emission allocation criteria; Section 3 describes input-output techniques that allow emissions from different sectors within an economy to be allocated according to producer and consumer criteria and, from that point, enable a country’s emission balance to be calculated; Section 4 sets out the methodology for the shared responsibility measure for an open economy taking into account its sectoral structure; Section 5 examines the results and, finally, Section 6 provides a summary of our findings and presents our conclusions. 4 The methodology described seeks properly to allocate emissions associated with energy and goods production from firms and not from households, whose emissions are mainly associated with transport and heating. For that reason, the responsibility measures proposed do not include the latter concepts. 5 2. International trade and responsibility for CO2 emissions: a review of the relevant literature The international literature on input-output methodology for calculating consumer responsibility includes a novel paper by Munksgaard and Pedersen (2001) for Denmark and papers by Ahmad and Wyckoff (2003) for OECD countries and Peters and Hertwich (2006) for the Norwegian economy. For the Spanish case Sánchez-Chóliz and Duarte (2004) calculate the CO2 emission balance and analyse contamination associated with different sectors. They show a slight increase at aggregate level for 1995 that hides major changes in pollution which are observable only at lower disaggregation levels. Papers with multi-regional scopes can also be found that tackle trade flows between areas by using input-output tables for import-producing countries, avoiding the hypothesis of equal technology (for production and pollution) commonly used in singleregion studies. In these papers, it is possible to select the main trade partners for each country and input-output data for them; a selected country table is also used as a mean in order to control for minor traders. Studies along these lines include the papers by Lenzen et al. (2004), which measures CO2 emissions associated with Danish production and consumption, Peters and Hertwich (2008b), which calculates emissions associated with production and consumption of three different gasses in Norway (CO2, NOx and SO2), and Peters and Herwitch (2008a), which focuses on CO2 emissions for Annex B and non Annex B countries for 2001 using GTAP databases. Consumer responsibility is calculated using the input-output benchmark, since it provides information on final and intermediate goods by sector of activity. Input-output techniques allow consumer responsibility to be calculated correctly by sectors and by households making use of emission multipliers. In addition, they enable imports to be included by deducting responsibility linked to imported inputs that are not finally consumed within the country because they are used to produce goods and services subsequently exported, and excluding exports. Moreover, in both cases the use of inputoutput tables not only allows disaggregated analysis but also analysis in direct and indirect terms. The allocation of direct and indirect emissions allows the sectors 6 ultimately responsible for emissions to be identified, since emissions are transferred from supplier sectors to consumer ones through the consumption of inputs. This procedure is equivalent to working with vertically integrated sectors (Pasinetti, 1973) 5. There are not many papers that analyse emission allocation according to the shared responsibility criterion, and most of them develop a theoretical approach. They can be classified according to two main research lines: the first, developed by Ferng (2003) and Peters (2008), focuses on assigning pollutant emissions among countries by taking into account international trade flows. Ferng (2003) calculates the emissions for for Taiwan in 1996 based on the consumer-benefit and producer-benefit principles, which require the net amount of CO2 sequestered by local ecosystems to be subtracted from the estimated emissions responsible, and subsequently proposes a criterion of shared responsibility that includes 50% of the previous two. However the calculations are at macroeconomic level, so the relevance of structural changes for overall responsibility cannot be analysed. Peters (2008) discusses the virtues and shortcomings of the different allocation criteria in terms of international trade and develops shared responsibility equations for unisectoral and multisectoral economies. This paper does not, however, develop a procedure for allocating international trade emissions or an empirical application. The second line of research does not develop a comprehensive analysis of international trade, since it focuses on distribution between agents. Bastianoni et al. (2004) develops a simulation exercise that allows the sectoral emissions from a country to be distributed in such a way that responsibility for emissions is shared between suppliers and purchasers and problems of double pollution are avoided. However, no comprehensive distribution criterion is established. Along similar lines, the papers by Gallego and Lenzen (2005), Lenzen et al. (2007) and Rodrigues et al. (2008) work on the analysis of emission distribution between economic agents (sectors of activity, producers and consumers) and, when producer and consumer responsibility criteria are well established, seek a suitable criterion for distribution that will allow shared responsibility to be calculated. 5 Gallego and Lenzen (2005) and shared responsibility researchers in general who do not consider international trade consider that working with vertically integrated sectors leads to the whole burden being placed on the end consumer, i.e. households. However, when working with direct data, responsibility is allocated entirely to producers. When working with vertically integrated sectors our interpretation is therefore different. 7 Our paper contributes to this literature as one of the first attempts to calculate responsibility for emissions for a country and its sectors with real data following the shared responsibility criteria defined in the following section. 2.1 Shared responsibility versus producer and consumer responsibility The consumer criterion has certain advantages over the producer criterion currently used. The consumer criterion allows emissions linked to international trade and, therefore carbon leakage, to be accounted for (Ferng, 2003). It also includes other emissions apart from those covererd by the signatories to the Protocol, widening the range of potential emission-reduction policies (Peters, 2008). According to this criterion, countries should make an effort to reduce emissions associated with inputs and imports of final goods, boosting the transfer of non-polluting technology to importer and supplier countries. The transfer of non-polluting technology would have a great impact because the widespread fragmentation and delocalisation of production, mainly to low-wage countries, has made countries such as China, Korea, Taiwan or Eastern European Countries into the main input suppliers for developed countries (see Grossman and Rossi-Hansberg, 2006, for USA and Cadarso et al., 2008, for the Spanish economy). However, although the consumer responsibility principle may be considered a fairer way of allocating responsibility for emissions in post-Kyoto agreements, it also has its problems. Peters (2008) points, on the one hand, to the more complex calculations and the uncertainty that results from that complexity, and on the other hand to the requirement for countries to make decisions about economic activities performed outside their jurisdiction and therefore beyond their national political power. This makes it difficult for countries to hold to agreements and decide what policies to apply, since they have no control over emissions in other countries. Moreover, the allocation of emissions to the consumer country or sector implies a weaker producer commitment to emission reduction, especially for developing countries (Bastianoni et al., 2004). The criterion of responsibility shared between the producer and the consumer has arisen in the relevant literature as a mechanism for easing some of these problems. 8 The main advantage of the shared responsibility criterion is its ability to engage industries, countries and end consumers in the reduction of emissions arising during both production and consumption. As an example, the Spanish vehicle industry would be assigned part of its direct emissions, plus part of those generated by the electricity consumed in the process and also part of those incorporated in imported automobile components, so that all the sectors involved are encouraged to look for low-emission suppliers. The adoption of the shared criterion helps to ease the implementation of the Kyoto Protocol in 2012 for less developed countries, see Ferng (2003), since it reduces their burden of responsibility for emissions associated with exports to developed countries. If policies aimed at stopping climate change are to succeed, a large number of signatory countries is a paramount requirement, and the shared responsibility criterion would encourage developing countries to sign up. The Bali Action Plan, resulting from the 13th UNFCC Parties Conference, held in December 2007, was the first multilateral agreement to propose emission mitigating actions for developed and developing countries (Cascón & Hinojo, 2009). The Copenhagen Agreement, signed on 18th December 2009, also considers the adoption of mitigating actions for those countries not included in Annex B, and gives a calendar for developing countries to propose the establishment of emission reduction goals. However, the possibility of applying the consumer criterion as a way of achieving lower emission levels is not considered.6 In this sense, the shared responsibility criterion would be less traumatic than a move to consumer responsibility, since the latter requires a major change in comparison to producer responsibility in the total amount of emissions allocated to a country (Lenzen et al., 2007). 6 Cascón and Hinojo (2009) consider other approaches to encourage the setting up of goals for emission reduction in developing countries: a) allocating emissions according to population, with a maximum allowance of CO2 emissions per person; b) allocating emissions according to per capita income, where the higher the income the greater the requirement for emission reduction. 9 3. Calculation procedure for shared producer and consumer responsibility criteria between countries. The total emissions associated with domestic production by firms within a country7, or, in other words, the producer responsibility (PR), is calculated in the input-output approach according to the following expression: PR e ( I A d ) 1 y d ( y r y x ) (1) where e is a diagonal matrix of emissions by unit produced by each sector of activity, I is the identity matrix, A d is the technical coefficients matrix, and y d is the diagonal matrix that captures the final demand met by domestic production. Elements in matrix e are obtained by dividing CO2 emissions per activity sector (E), by its effective production. From that point it is possible to calculate the emission multiplier that quantifies direct and indirect emissions by domestic final demand e ( I A d ) 1 . On the other hand, the responsibility associated with producer pollution can be decomposed into the total emissions associated with exports (shown in the diagonal matrix y x ) and the pollution associated with the rest of final demand, final consumption and investment (in diagonal matrix y r ). Expression (1) results in an emissions matrix which can be read by rows and by columns. The sum of the elements in each row, producer responsibility by rows (PR rows) covers the emissions produced directly by each sector when producing goods and services, and equals the emissions allocated following the Kyoto Protocol. The sum by columns, producer responsibility by columns (PR cols), covers direct and indirect emissions incorporated into inputs used to produce goods and services to meet final demand, equivalent to sub-systems (Sraffa) or vertically integrated sectors (Pasinetti). The results of the two sums are very different for each sector of the economy, although the total for the whole of the emissions is equal to the figure given by Kyoto. Consumer responsibility (CR), used among others by Munskgaard and Pedersen (2001), Ahmad and Wyckoff (2003), Sánchez-Chóliz and Duarte (2004) and Peters and 7 That is, not including direct emissions by households and public administration when consuming energy goods (gas, coal and oil derivatives). 10 Herwitch (2006, 2008a), includes emissions associated with domestic production sold within a country plus emissions associated with products made in other countries that are also the responsibility of the country that buys them as final and intermediate goods not subsequently exported. From this point of view, emissions included in exports and in imports required to export are not incorporated, since they must be allocated to the destination country. Direct and indirect emissions incorporated into imports coming from country c would be calculated by: Ecm ec ( I Act ) 1[A mc I - A d -1 y d y cm ] (2) ct [ Acm ( I A d ) 1 y r ] ct [ Acm ( I A d ) 1 y x ] ct ycm To calculate the above expression it is necessary to know the amount of emissions per monetary unit of production of the country from which imported goods come ( ec ), the total coefficient matrix for country c ( Act ), the technical coefficient matrix for goods imported by country c ( Acm ) and the diagonalised matrix of final demand directly bought from country c ( y mc ). ct ec ( I Act ) 1 is the total emissions multiplier for country c, which quantifies direct and indirect emissions per unit of total final demand (domestic plus imported). In the single-region model, expression (2) can be simplified by assuming that the production technology and pollution in all the countries involved are the same.8 This assumption allows Act to be replaced by At , ec by e and ct by t , and gives as a result a model of full domestic technology assumption where all the production rounds are considered. If emissions from all the countries from which goods have been imported are added, the result is an expression that measures total direct and indirect pollution, associated with all imports by a country ( E m ): E m e ( I At ) 1[A m I - A d -1 y d y m ] (3) 8 This assumption, although common in literature (Munksgaard and Pedersen, 2001, Sánchez-Chóliz and Duarte, 2004, Peters and Hertwich, 2006), requires many restrictions in calculations, since production technology, and therefore pollution, is expected to differ from country to country. On the other hand, see Wiedman et al. (2007) for a theoretical review of single-region and multi-region input-output models for the assessment of environmental impacts of trade and Andrew et al. (2009) for a quantification of the errors introduced by various approximations of the full Multi-regional input-output, for national carbon footprint accounting. 11 Finally, the expression for the consumer responsibility (CR) for the whole of the economy is: CR e ( I A d ) 1 y r e ( I A t ) 1 [ A m I - A d r t m d y [ A ( I A ) 1 r t -1 y r y m ] (4) m y ] y The row summation in expression (4) gives information on the consumer responsibility rows (CR rows), which consider direct emissions from a sector when producing goods sold within an economy plus emissions related to imports by an economy of goods and services in that sector. Consumer responsibility by columns (CR cols) calculates direct and indirect emissions related to domestic and imported inputs consumed by each sector (plus emissions of imported final goods in that sector). Other recent papers that analyse the spread of inter-sectoral emissions define consumer and producer responsibility differently. Gallego and Lenzen (2005) and Lenzen et al. (2007) do not consider international trade since they work with a closed economy. For these authors full producer responsibility includes direct emissions from sectors, while full consumer responsibility includes emissions from vertically integrated sectors, that is, direct and indirect emissions associated with final demand consumers. Our contribution to their work in interpretation by columns is two-fold: a) we consider responsibility by both sectors and countries because we consider international trade; b) we allocate responsibility for emissions to sectors as consumers (purchasers) instead of exclusively to end consumers. In our opinion, to reduce the impact of economic activity on the environment it is more adequate to allocate emissions to the firms that supply goods and services than to the consumers of those final goods and services (consumption, public expenditure, investment9 and exports). Firms can control their own production processes and can therefore adopt strategies more easily than end consumers, to reduce impacts on the environment. The exception could be a green tax, which affects both agents in a similar way, since it imposes a price increase that encourages intermediate and final consumers to reduce demand for more polluting goods. 9 In any event, emissions generated by investment goods should be treated differently from other final demand elements, since the former are within the production system. We consider that responsibility for emissions produced by investment goods must be accounted for by the businesses buying them, spread over a number of years according to fixed capital consumption. 12 4. Analysis of shared responsibility of a country. The idea of applying the shared environmental responsibility criterion to the allocation of emissions is to make each country accountable for all the emissions associated with the goods that it produces and consumes and for part of the emissions incorporated into goods consumed but not produced (imports) and produced but not consumed (exports). Responsibility for emissions associated with international trade is then shared with the countries with which a country trades. This procedure seeks to avoid the problem of carbon leakage and to promote the incorporation of a higher number of countries into post-Kyoto agreements, mainly developing countries as commented above. On the other hand, shared responsibility also implies a smaller change than the switch from the producer to the consumer approach, since is an intermediate position. For some countries or sectors the application of CR may impose a disproportionate burden, while for others which are mainly exporters or countries producing for others, the reduction of the burden may lead to less commitment to and respect for abatement policies. The expression for the shared responsibility criterion (SR) for a country in a singleregion10 model is: SR PR (1 )CR (1 ) [ A ( y r y x ) (1 ) y r t [ Am ( I Ad ) 1 y r ] t y m y r y x 6.1 6.2 t m ( I Ad ) 1 y r ] t y m (6) 6.3 A country is responsible for all the emissions associated with the production of goods consumed domestically (6.1), plus part of those incorporated into exports (6.2), plus part of those incorporated into imports (intermediate and final for the first and the second terms in 6.3 respectively) (6.3). The remaining problem is to find the correct sharing percentage . The aim of our proposal is two-fold: to establish a sharing percentage that on the one hand distributes responsibility for export and import emissions satisfactorily between countries and on the other hand helps to spread responsibility adequately at sectoral level. The procedure proposed would lead to a combination of the two current procedures of shared responsibility. One possible 10 Peters (2008) also shows an expression for calculating shared responsibility for a multi-regional model, but there is no empirical application. 13 solution would be the proposal by Lenzen et al. (1997) that emissions be allocated by sectors, where the amount of emissions withheld by suppliers depends on added value divided by net production (total production less intra-industrial consumption) 11 and emissions transferred to consumers would therefore be (1- ). A contribution of this paper is to apply the inter-sectoral emission criterion to the calculation of shared responsibility in an open economy, taking into account emissions associated with exports and imports. The shared responsibility expression for a country A that trades only with B (which could be the rest of the world) would be: SR A y r A y x (1 B ) t [ A m ( I A d ) 1 y r ] t y m 7.1 7.2 (7) 7.3 The parameters included in diagonalised matrices A and B , are the quotient of value added to the net product of sectors of activity in countries A and B respectively. Expression (7.2) quantifies that part of the responsibility for emissions associated with exports from country A that remain within that country proportional to A . Responsibility for the rest of the emissions is allocated to the countries that consume those exports. Expression (7.3) measures the emissions for which country A is responsible, resulting from imports purchased from B, proportional to (1 B ) . B is responsible for part of the emissions generated by industries that produce goods exported to A, depending on B’s value added on net production ( B ).12 The method explained makes a country accountable for that part of emissions that are due to its consumption, either at aggregate level or by sectors.13 On the other hand, the proposed allocation of shared responsibility does not lead to double accounting, since some countries’ exports are other countries’ imports. 11 The advantages of using value added divided by net product as a distribution measure, following Lenzen et al. (2007) are: invariance with respect to disaggregation of the supply chain, aggregation of the supply chain and gross or net accounting. 12 For our case, because of the application of a single-region model and the use of a similar technology assumption, A = B . 13 However, different sectors of activity share only the emissions that each uses when producing goods and not those associated with the consumption of intermediate goods by each sector. To add these in, it would be necessary to work with vertically integrated sectors. 14 This method is compatible with different possibilities for emission allocation by sectors. Expression (7) results in matrices, since the final demand vectors involved are diagonalised. The next subsection analyses the calculation of shared responsibility by rows and also by columns for each sector. 4.1 Shared responsibility by rows. Sectoral allocation by rows implies that sector i of economy A is held responsible for the emissions that it generates when producing inputs sold to other sectors that cater for domestic demand (row in 7.1), plus that part of emissions generated when producing inputs required for exported goods (row in 7.2), plus part of the emissions generated by sector i in country B when producing the inputs imported by economy A (first term in row 7.3), plus part of the emissions generated by sector i in country B when producing the final goods imported by A (second term in row in 7.3). The advantage of the rows approach is that it distributes between countries and sectors the emissions accounted for under the Kyoto Protocol under the producer responsibility principle.14 A drawback is that it holds a sector responsible for part of the emissions associated with imports produced by the equivalent sector in a foreign country, even though these imports may be used by other sectors in the economy or devoted to final demand. However, emission distribution by rows leads to an allocation of responsibility by sectors similar to that proposed by the EU market for emissions allowances for 2013 to 2020, though restricted only to intra-community trade. In this market, emissions are allocated under the territorial principle and the benchmarking mechanism is calculated at sectoral level for all EU countries. For that reason, if we focus on EU trade, the row total for shared responsibility emissions equals the figure proposed by the new European legislation. However, the allocation of allowances per sector of activity for each country differs depending on the intensity of the emissions from exports and imports for each country. The main difficulty in the use of allocation by rows is holding countries responsible for part of the emissions from the same industry in a different country. For that reason, a feasible option would be for firms in each country to be held responsible for their own 14 When distribution measures are not used, the sum of the rows gives the emissions from each sector when producing, as given in national statistics, e.g. in the case of the Atmospheric Emissions Satellite Account for Spain. 15 emissions through the emissions allowance market, as currently happens, and for the country to be held responsible for the excess of emissions associated with shared responsibility. When a country’s emissions are higher than those given according to the producer criterion additional measures are required. The following are suggested: encouraging non-polluting energies such as wind and solar by establishing bonus mechanisms; establishing a tax on carbon content, since firms transfer this to consumers; levying a special tax on kerosene to internalise part of the large quantities of emissions from aircraft; developing a policy of environmentally efficient transport with elements such as boosting of public transport; strictly regulating thermal insulation in buildings to avoid heat loss; obligatory use of solar energy for water heating in buildings; establishing minimum temperature settings for air conditioners in public and private buildings; progressive vehicle registration tax depending on how much a vehicle pollutes; etc. Following a similar line, the public sector could include an environmental clause in public procurement contracts so that firms with more environmentally efficient production processes and those that propose less polluting projects are favoured. 4.2 Shared responsibility by columns Allocating responsibility for emissions by sectors according to columns implies reallocating emissions according to vertically integrated sectors (VIS), considering sectors as consumers and as responsible not just for production but also for purchases from other sectors. In this way, sector i would be responsible for the emissions generated in the production of its own inputs used, plus emissions by production processes in other sectors when producing inputs used by i to cater for domestic demand (column in 7.1), plus part of the emissions from its own inputs and those of other sectors that are used to produce goods to be exported (column in 7.2), plus part of the emissions associated with the inputs imported for its production process to cater for domestic final demand (first term in 7.3), plus part of the emissions incorporated into final goods imported for each sector (second term in 7.3).15 The advantages of this sectoral approach by columns are similar to those of the consumer versus producer criterion. A sector that uses highly pollutant inputs must account for them, which will 15 According to our “emissions by columns” interpretation, households are responsible only for direct emissions (heating and private transport mainly). However, that part of the emissions included in final imports is more difficult to allocate to domestic sectors. One possible solution is to distribute the responsibility between the producing sector (in a foreign country) and domestic households, which benefit from consumption. 16 encourage sectors to search for suppliers, or substitute inputs, which are more efficient in environmental terms. Also, a sector will have a strong incentive to reduce emissions if its demand sectors require it to do so. It can be difficult to establish an emission reduction policy based on emission allocation by columns. On the one hand, it compels firms to reduce emissions of the inputs demanded, which implies that they have some control over their suppliers’ production processes or can substitute inputs for which there may in fact be few if any substitutes. On the other hand, the emissions by columns may be very unbalanced in relation to rows, and that may imply too high a cost for industry. The concept of shared responsibility by columns would also be useful for defining the environmental profile of a product using an environmental label based on CO2 emissions (that could be named ecoemissions or CO2 ecolabel) or of a production process, similar to ISO 14001 and environmental management systems. Firms could measure direct and indirect CO2 incorporated into the goods and services that they offer on markets. In this way, firms recognised as less-polluting in their areas of business could obtain gains in quality and product differentiation and thus increase their market share. More importantly final consumers would, through their consumption decisions, deliberately lead the way on a path of environmentally friendly growth. Also, considering emissions associated with imports when calculating the CO2 ecolabel could help to solve poverty and environmental degradation problems in less developed countries, in a similar way to Fair Trade or Environmental Certifications (Azqueta, et al., 2006). There remains a third criterion for distributing responsibility between sectors which is not analysed in depth in this paper and which would imply the calculation of a shared responsibility between rows and columns for each sector of activity. This is equivalent to the proposal by Gallego and Lenzen (2005) and Lenzen et al. (2007) and implies spreading responsibility between the sum of a row (emissions that are accounted for by industries) and the sum of a column (emissions that are accounted for by families according to these authors). This distribution could be complementary to the one 17 proposed here, but we reinterpret emissions by column as responsibility of consumer sectors and expressly include international trade. 16 5. Environmental responsibility for the Spanish economy. In an empirical analysis, the responsibility for emissions of the Spanish economy is caluclated according to producer, consumer and shared criteria at sectoral level. The main data sources are Input-Output Tables and CO2 emissions per sector of activity provided by the Atmospheric Emissions Satellite Accounts (CSEA), both published by INE. Results are calculated for 2000 and 2005 at the lowest available disaggregation level, the 46 sectors of activity common to both sources, 2000 is the base year. This also means that emissions incorporated into international trade are adequately captured since, as Su et al. (2010) show, 40 sectors is a sufficient level of disaggregation to capture them. Figure 1 shows that the results under shared responsibility for the Spanish economy are intermediate between those under the producer and consumer responsibility approaches. However, as the Figure shows, shared responsibility is closer in growth terms to CR due to the major increase in emissions under CR for the Spanish economy. This is because of the great weight and growth of imports. For the Spanish economy as a whole, the change of criterion from PR to CR means an increase in responsibility of 15.9% for 2000 and 40.8% in 2005, while the shared responsibility criterion shows increases of 9.8% and 34.4% respectively. It is important to evaluate the impact of the consumer and shared responsibility criteria compared to the producer criterion not at both aggregate and disaggregated levels, when the objective is to choose a criterion for allocating responsibility. Importer country firms and consumers find it hard to assume responsibility for emissions related to imported goods when this significantly increases their burden. In these cases the most important aspect is not the amount of pollution responsibility according to the consumer or shared criteria but what it represents in terms of total producer responsibility (which depends on the trade balance and on the different emission intensities of products and/or 16 This allocation avoids part of the decomposition between emissions allocated to rows and columns, but does not ensure the elimination of the divergence with the Kyoto criterion. Moreover, it does not help to solve the problem of allocation of emissions to firms within a sector of goods from their own or other sectors produced in other countries and used by firms in any sector or by final consumers. 18 countries, although for our case this latter consideration is not taken on board, since technology is considered to be similar from country to country). Figure 1. Producer, consumer and shared responsibility for the Spanish economy, CO2 gigagrams. 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 PR CR 2000 SR 2005 Source: Own work from input-output tables and CSEA. 5.1 Consumer, producer and shared responsibility by rows (sectors) Producer responsibility by rows gives the direct emissions from a sector within a territory. Consumer responsibility by rows subtracts from that figure responsibility in regard to exports in which the sector participates direct or indirectly (shared responsibility subtracts it only in part) and adds responsibility for emissions associated with intermediate and final imports for the whole of the economy for goods produced by the sector (shared responsibilty adds only a part of this figure). Depending on trade impact, producer responsibility in the different rows can be higher or lower than consumer or shared responsibility. In 34 of the 46 sectors, consumer and shared 19 responsibility are higher than producer responsibility by rows, due to the higher content of imports compared to exports.17 The importance of emissions associated with imports resulting from crude oil and natural gas must be highlighted. Between them they alone explain a large part of the discrepancy between producer and consumer/shared responsibility for the Spanish economy (see Figure 2). These emissions are included in the consumer and shared measures through imports, but they are not included in the producer-based measure. The strong dependency of the Spanish economy on oil derivatives and its lack of oilfields generates a dependency on imports for virtually all crude oil and natural gas consumed in the economy. When emissions associated with crude oil and natural gas are deducted, the Spanish CR for 2005 is only 9.8% higher than the PR, and SR is only 5.8% higher. If emissions due to crude oil and natural gas are deducted for 2000 the relationship is reversed, with PR being higher by 2.1% and SR by 1.1%. The data for the Spanish economy show a discrepancy between PR by rows and CR by rows of less than than 10% in 24 out of the 46 sectors for 2005 and of no more than 30% in a further 12 (Table 1A in the Appendix). In the remaining 10 sectors the difference is greater than 30% and indeed in 5 of them it is greater than 100% when compared to either CR by rows or SR by rows. In these 10 sectors, changing to the CR or SR criterion by rows may lead to a survival problem or a major competitive disadvantage. Only in one of these sectors (Water transport) are CR and SR lower than PR. Adopting the SR criterion does not solve the whole of the problem due to the differences between the producer and the consumer criteria. The sectors related to information and telecommunication technologies generate low emissions per unit produced (because their emission coefficient is very low), so the repercussion for them of the allocation of more emissions than are actually produced would be very small. In other three - Mechanical engineering, Clothing and furs and Metal ore extraction - the survival problem could appear. These sectors require special measures, while for the rest of the economy the SR criterion could be adopted without generating survival problems for firms. 17 Another reason for the discrepancy is the different emissions associated with a product for the use of different technologies in the countries of import and export, but this element is not analysed in our application since similar technologies are considered. 20 Figure 2. Producer, consumer and shared responsibility by rows, selected sectors where PRrows<CRrows in 2005 (CO2 Gigagrams). Crude oil and natural gas Elect., gas and steam product. and distrb. Coke, refining and nuclear. Anthracite, coal, lignite and peat Metal ore extraction Metallurgy Fishing 0 20,000 40,000 PRrows 60,000 CRrows 80,000 100,000 120,000 SRrows Source: Own work from input-output tables and CSEA. Another problem of the responsibility allocation system described, based on CR or SR by rows, is that firms are accountable for emissions associated with goods in the same sector imported by themselves or by other firms in the economy or families, goods and services. That may be considered unfair. Another option would be the method established by the Climate and Energy Package in the EU, which considers the possibility of incorporating importers of products with a high risk of carbon leakage into the Community emission allowance trading system. In this case, the criterion applied to these products would be overall responsibility (including both domestic production and imports) rather than consumer or shared responsibility. This would not affect the feasibility of domestic firms that work with these products, and would compensate them for the potential loss of competitiveness linked to the emissions market. Another way of avoiding the unfairness problem is to establish a tax on CO2 exports and imports. So far as it affects prices, the responsibility (burden) would fall on intermediate and 21 investment goods consumers, firms and final goods consumers and families.18 Moreover, consumer and shared responsibility can be distributed by columns instead of rows, as detailed in the next subsection. 5.2 Producer, consumer and shared responsibility by columns (VIS). When emissions are recalculated by columns or vertically integrated sectors, the responsibility for pollution falls on those sectors that directly and indirectly use highpolluting goods rather than only on those that produce them. The difference between emissions by rows (observable sectors) and by columns (vertically integrated sectors) is due to the difference between the amount of responsibility attributable to industry when producing and the amount due to the consumption of inputs. This difference for domestic or territorial emissions would be reflected on the PR by rows or columns. When PR by rows and CR by columns are compared, the difference in emissions reflects two issues: a) responsibility as producer and as consumer for a sector; b) the impact of international trade in the responsibility discrepancy. CR by columns reflects the responsibility of a sector and also considers its international emissions as a consumer (plus final goods imports of the good that characterises a sector). For that reason aim to analyse first the difference in responsibilities between producer and consumer sectors from the criterion of responsibility of a country as a producer (that is, PR comparing rows and columns) and, second, the impact of trade on direct and indirect industry responsibility, as the difference between PR by columns and CR by columns, analysing at the same time the changes that would be entailed by considering SR by columns as the responsibility allocation criterion. Table 2A in the Appendix shows data for all the sectors. Figure 3 shows some of the sectors where the change is greatest between allocating responsibilty for CO2 within the domestic territory to a sector as a producer (PR by rows) and as consumer (PR by columns). The sectors shown have production processes that are not too heavily-polluting, but directly or indirectly use highly-polluting domestic inputs. They are thus considered pollutant purchasers (Sánchez-Chóliz and Duarte, 2004) that need other sectors to pollute for them to produce. For instance the responsibility of the Construction sector as a producer is 3,008 Gg CO2, while as an 18 It must be highlighted that the transfer occurs through the matrix columns. 22 input consumer it is responsible for as much as 52,148 Gg. Moreover, a large number of the sectors where the repercussion of the change in the criterion is most pronounced are services sectors, since their emissions are low but their indirect emissions (except those related to inputs consumed) are much higher. It is also important to highlight the najor emission by columns associated with Food and Beverages, because of the consumption of goods that come from agriculture and are thus CO2 intensive, and also for Motor Vehicles. The discrepancy between the two criteria for the sectors mentioned is such that PR by rows is 5% of PR by columns for Construction, and 30% for Foods and beverages. Figure 3. Responsibility by columns and rows in selected sectors where PRcols>CRrows in 2005 (CO2 Gigagrams). Source: Own work from input-output tables and CSEA. There are also sectors that behave in the opposite way, i.e. they their consumer responsibility decreases in comparison to their producer responsibility (Figure 4). These sectors are usually intermediate goods and services producers such as Electricity Production or Distribution, Non-metallic Mineral Products, Water and Terrestrial transport, Crude Oils, Metallurgy and Agriculture. Their activities as consuming sectors is much less contaminant than their activities as producers. So for Agriculture PR by rows is 1.6 times higher than PR by columns and for Non-metallic Mineral Products it is 4.5 times higher. The strong imbalance between the responsibility of industries as 23 producers and consumers makes it difficult for PR rows to be chosen as the only criterion for allocating responsibilities. Only in 3 out of the 46 sectors are the differences smaller than 30% and for most cases they are over 70%. Figure 4. Responsibility by columns and rows in selected sectors where PRrows>PRcols in 2005 (CO2 Gigagrams). Electric energy, gas and steam production or distribution Other non-metallic mineral products Terrestrial transport Cokery, refinery and nuclear. Metallurgy Agriculture, stockbreeding and hunting -10,000 0 10,000 PRrows 20,000 30,000 PRcols 40,000 CRcols 50,000 60,000 70,000 80,000 90,000 100,000 SRcols Source: Own work from input-output tables and CSEA. Graphs 3 and 4 also show the impact of trade on the total emissions of a sector, when comparing total emissions under the producer criterion (PR cols) with total emissions under the consumer criterion (CR cols) and under SR. In most of the sectors selected consumer responsibility by columns is higher than producer responsibility by columns, that is, emissions associated with imports by these sectors are higher than emissions associated with exports. Once more, SR by columns gives an intermediate measure between the other two, but one that it is closer to the consumer than to the producer criterion. A comparison of the differences in the first three measures in the two graphs shows that they are much stronger between PR rows and columns than between PR columns and CR columns. That is, the impact of trade on the change from the producer to the consumer criterion by columns is smaller than the impact of the change from emissions from industry as a producer to industry as a consumer. The final result is such that the 24 differences between SR by columns and producer responsibility by rows, or the Kyoto allocation criterion, are very significant for all sectors. As an example, the emissions allocated to Construction according to Kyoto are 4.5 of the total emissions allocated by the SR by columns. Also for Electricity and Gas Production Kyoto emissions are 227% of the SR criterion. For Metallurgy the figure is 839%. It is concluded, contrary to the findings for the responsibility analysis for products or rows, that a criterion of responsibility allocation that takes international trade into account for Spain and also emissions associated with intermediate inputs is hard to apply because of the differences in responsibility for firms. Applying the SR criterion by industries reduces this discrepancy, but only by a little. That does not mean that there are no suitable policy options. We consider that the main advantage given by the partial use of SR by columns is that firms would encourage their suppliers to improve their environmental efficiency, which would justify their adoption. Also, the responsibility could be shared between input suppliers and consumers and final consumers (as suggested by Gallego and Lenzen, 2005), making the application of the criterion less traumatic. An alternative policy could be to offer a bonus to firms that are more efficient in direct and indirect terms by establishing a CO2 ecolabel that allows them to differentiate their products for consumers (intermediate and final), so that they can, through their decisions, guide the economy to a sustainable development path. Another possibility would be to set two clearly differentiated emission reduction goals: one for direct emissions, such as the one now established in the emissions market, and the other for total emissions calculated from the consumer criterion by columns or the SR one. In the latter emission reduction goals would be chosen based on the identification of firms that are directly and indirectly more efficient in environmental terms for each industry, so that the penalty for firms that do not achieve the goals would not compromise their survival. As an example, the purchase price of emission allowances must not be higher than 5-10% of the wage cost. 6. Conclusions The achievement of the emissions reduction goals proposed for the signatory countries of the Kyoto Protocol, e.g. for Spain, requires a wide range of policies to be established. 25 Correctly identifying responsibility for pollutant emissions can lead to more effective policies. The Kyoto Protocol uses a territorial emission allocation criterion, so responsibility is allocated to the polluter. However, globalisation has led to an increase in international trade in final and, especially, intermediate goods, which has repercussions on emission allocation. Through international trade pollution is transferred between developed Kyoto signatory countries and non-signatories, resulting in a carbon leakage that may lead to an increase in emissions at global level. Including international trade in the responsibility for emission allocation procedures would help to solve the problem. This is what the consumer responsibility criterion achieves. However, the change in the allocation from the producer to the consumer criterion may be too sharp. At global level, the results indicate that under the consumer criterion the Spanish economy’s responsibility for CO2 emissions would have been 40.8% greater in 2005. The SR criterion may help to ease these problems, since it is an intermediate procedure that involves both consumers and producers. Applying SR in the Spanish economy would have increased Spain’s responsibility as a producer country by 9.8% in 2000 and by 34.4% in 2005. Analysis by sectors and columns allows the responsibility for emissions of the country that produces them to be transferred to its firms. The method proposed allows SR to be identified by rows, where only direct emissions from production are included, but these sectors share the emissions linked to international trade in their product. The differences observed between PR by rows compared to CR by rows and SR by rows are only significant for a small number of sectors. Emissions associated with crude oil and natural gas are the principal reason for difference between PR, CR and SR, all by rows, for Spain. However, it is hardly fair for firms in a sector to be considered as responsible for emissions associated with imports by other sectors or by final consumers of a product. Another option is to follow the guidelines of the Climate and Energy Package, which proposes that product importers in sectors at risk of carbon leakage should be included in the European emission allowance system. A third option is the establishment of a frontier tax on emissions linked to imports, reducing the possibility of emissions leakage. In any case, under the SR criterion by rows, the imports included in the European emissions market and the burden of a tax must be set up in such way that less of a 26 burden is imposed on emissions associated with international trade than those related to production to meet domestic demand. In this way, Europeans would be responsible for only part of the emissions associated with international trade, reducing the carbon leakage problem (compared to the Kyoto allocation criterion), which would give stronger coverage than the Kyoto signatory countries. SR by columns is also defined, where sectors are accounted for by emissions linked to inter-sectoral emissions and part of those included in international trade in the products consumed by the sector. This eliminates the drawback of responsibility by rows since it relates the emission responsibility for imports to the goods consumed by the sector. But it has an important drawback; the difference between PR rows (Kyoto) and SR cols is greater than 70% for most sectors of activity, which would clearly lead to opposition to its application. For instance the Clothing sector goes from responsibility by rows as a producer to the tune of 157 CO2 Gg (Kyoto) to 3,481 Gg under CR by cols and 2,626 Gg. under SR by cols. This could prevent the application of effective emissions reduction policies in similar cases without tackling income profitability or survival problems for firms. On the other hand, sectors with a strong exporter or intermediate goods producer profile may lose interest in or lack commitment to the application of emission reduction measures when the consumer responsibility criterion reduces the emissions for which they are accountable since the burden falls mainly on others (consumers) as mentioned by Peters (2008), and SR does not solve this problem. For example, the responsibility of Other Non-metallic Mineral Products changes from 50,260 Gg CO2 as producer under the criterion by rows (Kyoto) to 2,162 Gg as a consumer by columns and 5,871 under shared responsibility by columns. From this perspective the policy options considered would favour the creation of an ecolabel that shows consumers which firms are more environmentally friendly or of setting different goals for reducing direct and indirect emissions so that the survival of firms is not affected. 27 BIBLIOGRAPHY Abraham, K. and Taylor, S., 1996. 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Producer, consumer and shared responsibility by rows, Gg of CO2 Year 2000 Year 2005 SRrows/ SRrows/ PRrows CRrowsSRrows PRrows CRrowsSRrows PRrow (%) PRrows (%) (A)- 01 Agriculture, stockbreeding and hunting (A)- 02 Silviculture and forestry exploitation (B)- Fishing (C)- 10 Anthracite, coal, lignite and peat (C)- 11 Oil crudes, natural gas and uranium (C)- 13 Metallic minerals extraction (C)- 14 Non-Metallic minerals extraction (D)- 15 Food and beverages (D)- 17 Textile industry (D)- 18 Clothing and furs (D)- 19 Leather and footwear (D)- 20 Wood & products of wood and cork (D)- 21 Pulp, paper & paper products (D)- 22 Printing & publishing (D)- 23 Mineral oil refining, coke & nuclear fuel (D)- 24 Chemicals (D)- 25 Rubber & plastics (D)- 26 Non-metallic mineral products (D)- 27 Basic metals (D)- 28 Fabricated metal products (D)- 29 Mechanical engineering (D)- 30 Office machinery (D)- 31 Electric machinery and materials (D)- 32 Electronic materials (D)- 33 Medical, precision and optical instruments (D)- Motor vehicles, trailers and semi-trailers (D)- 35 Other transport equipment (D)- 36 Furniture, miscellaneous manufacturing (D)- 37 Recycling (E)- 40 Electricity, gas and water supply (E)- 41 Water collecting, treatment and distribution (F)- 45 Construction (G)- 50-52 Motor vehicles and reparation (H)- 55 Hotels & catering (I)- 60 Inland transport (I)- 61 Water transport (I)- 62 Air transport (I)- 63 Supporting and auxiliary transport activities (I)- 64 Communications (J)- 65-67 Financial intermediation (K)- 70-74 Real estate activities and business services (L)- 75 Public administration (M)- 80 Education (N)- 85 Health and social work (O)- 90-93 Other community, social & personal serv. (P)- 95 Private households with employed persons Total 8,296 101 3,143 1,078 361 176 495 5,018 1,423 133 121 445 2,685 198 20,300 6,890 128 45,041 13,353 396 312 7 98 9 7 222 68 223 317 91,048 546 2,654 5,236 2,780 19,477 2,739 7,404 1,553 232 208 567 743 542 915 1,004 0 6,910 98 3,634 3,556 45,193 1,076 404 4,873 1,499 172 96 425 2,423 191 22,245 7,223 115 38,042 13,540 418 401 12 104 18 11 192 62 222 321 95,535 535 2,648 4,787 2,779 16,642 1,361 4,915 1,374 225 199 562 743 548 914 989 0 7,782 101 3,354 2,087 27,409 758 440 4,904 1,474 158 104 432 2,504 194 21,952 7,122 120 40,887 13,484 410 366 11 102 15 9 199 64 222 321 93,454 540 2,651 5,076 2,780 18,219 1,883 5,810 1,454 229 206 565 743 543 915 998 0 93.8 99.7 106.7 193.6 7592.5 431.0 88.8 97.7 103.6 119.1 86.0 97.0 93.2 97.8 108.1 103.4 93.5 90.8 101.0 103.5 117.3 160.7 104.3 171.3 132.9 89.4 94.4 99.6 101.1 102.6 98.9 99.9 96.9 100.0 93.5 68.7 78.5 93.6 98.9 99.0 99.7 100.0 100.1 100.0 99.4 - 8,660 112 2,563 842 295 204 565 6,158 1,750 157 141 529 3,316 224 20,572 8,294 153 50,260 14,205 465 566 8 116 10 8 249 84 242 370 92,445 679 3,008 5,878 3,134 21,921 3,580 7,455 1,755 255 228 624 817 596 1,010 1,134 0 7,654 117 3,625 5,304 82,565 3,265 606 6,135 2,274 258 148 576 3,357 228 25,176 9,257 158 46,486 16,994 554 866 24 135 25 14 249 74 272 439 110,944 680 3,029 5,637 3,156 19,939 2,042 5,469 1,650 261 232 666 817 606 1,011 1,138 0 8,241 112 3,019 2,833 76,376 1,949 591 6,140 2,078 222 146 558 3,341 226 24,662 8,958 156 48,014 16,117 521 742 19 130 20 12 249 76 262 495 102,713 679 3,020 5,786 3,144 20,814 2,546 5,782 1,699 257 229 638 817 597 1,010 1,135 0 248,692 288,231 273,050 109.8 265,637 374,113 357,133 31 95.2 100.3 117.8 336.5 25890.3 955.6 104.5 99.7 118.7 141.4 103.3 105.4 100.8 100.9 119.9 108.0 101.9 95.5 113.5 112.0 131.1 241.4 112.2 202.5 152.0 100.0 91.0 108.1 133.7 111.1 100.1 100.4 98.4 100.3 95.0 71.1 77.6 96.8 100.9 100.3 102.2 100.0 100.2 100.0 100.1 134.4 Table 2A. Producer, consumer and shared responsibility by columns, Gg of CO2 Year 2000 (A)- 01 Agriculture, stockbreeding and hunting (A)- 02 Silviculture and forestry exploitation (B)- Fishing (C)- 10 Anthracite, coal, lignite and peat (C)- 11 Oil crudes, natural gas and uranium (C)- 13 Metallic minerals extraction (C)- 14 Non-Metallic minerals extraction (D)- 15 Food and beverages (D)- 17 Textile industry (D)- 18 Clothing and furs (D)- 19 Leather and footwear (D)- 20 Wood & products of wood & cork (D)- 21 Pulp, paper & paper products (D)- 22 Printing & publishing (D)- 23 Mineral oil refining, coke & nuclear fuel (D)- 24 Chemicals (D)- 25 Rubber & plastics (D)- 26 Non-metallic mineral products (D)- 27 Basic metals (D)- 28 Fabricated metal products (D)- 29 Mechanical engineering (D)- 30 Office machinery (D)- 31 Electric machinery and materials (D)- 32 Electronic materials (D)- 33 Medical, precision & optical instruments (D)- Motor vehicles, trailers & semi-trailers (D)- 35 Other transport equipment (D)- 36 Furniture, miscellaneous manufacturing (D)- 37 Recycling (E)- 40 Electricity, gas and water supply (E)- 41 Water collecting, treatment & distribution (F)- 45 Construction (G)- 50-52 Motor vehicles and reparation (H)- 55 Hotels & catering (I)- 60 Inland transport (I)- 61 Water transport (I)- 62 Air transport (I)- 63 Supporting & auxiliary transport activities (I)- 64 Communications (J)- 65-67 Financial intermediation (K)- 70-74 Real estate activities & business services (L)- 75 Public administration (M)- 80 Education Year 2005 SRcols/ PRcols CRcols PRrows (%) SRcols SRcols/ PRrows (%) 4,031 55 3,658 85 91 4 70 25,848 1,730 3,481 1,675 181 958 1,095 4,964 60 2,892 84 82 70 180 23,911 1,711 2,626 1,493 259 1,414 1,028 60 59 92 8 23 40 36 477 120 1974 1234 58 53 519 12,266 9,976 1,177 11,158 6,909 2,606 3,132 237 1,821 577 22,641 12,535 379 2,162 -860 2,882 8,799 1,469 1,936 4,247 21,055 12,547 743 5,873 1,693 2,928 7,113 1,070 2,002 3,065 104 182 581 13 13 739 2280 15280 2043 34051 12477 4346 1854 406 7,394 1,512 1,817 17,772 3,091 1,370 14,778 2,672 19568 6657 3930 1,639 125 80,648 735 39 89 1,676 -3 23,.929 3,843 -5 44,061 3,244 -4 40,558 1455 -1 45 863 51,354 21,766 18,600 8,303 632 3,647 623 7,845 9,145 5,396 16,354 1,748 5,779 114 296 175 194 84 64 78 757 52,148 21,577 15,394 10,679 2,715 6,873 1,176 70,966 31,608 22,744 8,977 1,010 5,827 1,095 66,660 30,382 21,307 10,344 1,608 5,995 201 2512 580 766 53 59 81 1,755 255 228 2,284 2,222 1,915 1,814 668 654 117 288 314 3,230 2,178 1,290 3,463 3,573 1,965 3,643 3,329 1,871 235 1435 899 624 817 596 12,125 9,817 4,511 3,226 2,541 1,374 569 342 253 10,351 8,091 3,076 15,162 14,303 5,293 14,488 13,113 4,874 2555 1765 899 PRcols CRcols SRcols 8,660 112 2,563 842 295 204 565 6,158 1,750 157 141 529 3,316 224 3,263 61 3,506 8 443 -6 25 19,231 1,225 3,574 1,177 115 188 1,214 7,727 86 3,644 820 491 77 451 10,240 1,803 1,649 702 484 2,096 673 93 85 116 76 136 43 91 204 127 1240 580 109 78 340 5,238 53 1,834 70 28 160 337 17,437 1,445 831 922 333 1,972 731 20,572 8,294 153 50,260 14,205 465 566 8 116 10 17,765 8,617 199 1,245 135 2,365 6,614 2,080 1,800 2,918 20,077 9,266 639 38,461 7,317 1,428 4,451 1,266 1,426 2,018 99 134 499 85 55 361 1427 18081 1455 22419 8 249 84 1,525 13,092 1,807 873 9,649 1,260 242 370 92,445 3,762 0 38,163 679 3,008 5,878 3,134 21,921 3,580 7,455 32 (N)- 85 Health and social work (O)- 90-93 Other community, social & personal serv. (P)- 95 Priv. households with employed persons Total 1,010 6,885 2,162 236 5,677 9,572 8,828 965 1,134 7,197 2,235 223 5,436 8,742 8,114 808 0 248,692 0 0 - 0 0 0 288,231 273,050 110 265,637 374,113 - 357,133 144 Sources for Tables 1A and 2A: Own work from input-output tables and CSEA. 33