Structural changes in carbon dioxide (CO 2 ) emissions in the United Kingdom (UK): an emission multiplier product matrix

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Structural changes in carbon dioxide (CO2) emissions in the United Kingdom (UK): an emission multiplier product matrix (EMPM) approach Yousaf Ali 1 & Rosita Pretaroli 2 & Muhammad Sabir 3 & Claudio Socci 2 & Francesca Severini 2 Received: 29 July 2019 / Accepted: 15 October 2020/ # Springer Nature B.V. 2020

Abstract

The increasing emissions of carbon dioxide (CO2) have been a major concern for most of the countries around the world; and as a result, every country is concerned about setting appropriate strategies to curtail it. This study proposes emission multiplier product matrix (EMPM), a novel approach that integrates CO2 emissions with input-output (I-O) tables for estimating pollution generated by inter-industry activities. In combination with structural decomposition analysis (SDA), the proposed EMPM can be used to measure emissions and identify its key drivers such as changes in technology and demand variations. Instead of generalised strategies, this approach is helpful in devising sectorspecific pollution reduction strategies. The proposed methodology can also be applied at the sectoral, regional, national or global scale for identification of emissions sources. This study applies the proposed EMPM approach in combination with SDA to the UK’s economy by using I-O tables and emission data for the period 1995–2009. The study finds that, overall, UK’s carbon emission can be reduced through a disaggregated policy aiming to curtail industrial emissions and ensuring a more efficient transport sector. Keywords Environmental I-O Analysis . EMPM . SDA . CO2 emissions . UK JEL code C670

1 Introduction The Intergovernmental Panel on Climate Change (IPCC) reported that global warming is mainly due to human activities-based greenhouse gas emissions (IPCC 2017). Furthermore, human activities are responsible for about 1.0 °C of global warming above the pre-industrial

* Yousaf Ali [email protected] Extended author information available on the last page of the article

Mitigation and Adaptation Strategies for Global Change

level (IPCC 2019). Additionally, global warming is likely to reach to 1.5 °C between 2030 and 2052 and to about 2.0 °C by 2100. The global CO2 emissions have increased from around 13,000 (million metric tons of CO2 equivalents) in 1972 to about 34,000 (million metric tons of CO2 equivalents) in 2017 (IEA 2019). In Europe, the share of emissions in total emissions for fuel combustion, transportation and industrial sector changed from 62, 15, 9 to 54%, 25% and 8% respectively, during 1990–2017 (EEA 2019). It is also of concern that climate-related risks for natural and human systems are higher for higher global warming compared to present era (IPCC 2019). Furthermore, the impacts of higher global warming further depend upon the magnitude and rate of warming, geographic locations, levels of development, vulnerability, on the choices and implementation of adaptation and mitigation strategies (IPCC 2019). The United Nations Framework Convention on Climate Change (UNFCCC) was opened for signature in