Inter-industry linkages, energy and CO2 multipliers of the electric power industry in Thailand

Abstract

The vital electricity generation sector contributes substantially to CO2 emission in Thailand. In this study 19 relevant sectors, based on input-output tables for the years of 2000, 2005 and 2010, have been aggregated to investigate interindustry linkages among the power sector and other sectors. Also, the energy multiplier and CO2 multiplier are applied to estimate the direct and indirect energy intensity and CO2 intensity of 19 industries during 2010. Results show that the electricity generation sector has a high forward linkage effect and a relatively low backward linkage effect. Consequently, the electricity generation sector has a significant influence as an input source for other industries, but it has a low capacity for attracting other industries’ output. In 2010 the electricity generation sector was the highest energy intensive and CO2 intensive industry with 1,770 × 107 kcal million US$–1 and 3,521 ton CO2 million US$–1, respectively. Besides, total indirect energy intensity and total indirect CO2 intensity from the aggregated 19 sectors accounted for 53% and 52% of the total intensity, respectively. Accordingly, the huge indirect energy intensity and CO2 intensity in the construction, machinery, other manufacturing played significant role in Thai’s industry, and should not be overlooked. To promote energy conservation and emissions reduction by the electricity generation and other relevant sectors, this study suggests that the Thai government should promote sustainable design of buildings and improve the electricity transmission and distribution processes. Besides, the environmental impact assessment should be undertaken for proposed nuclear power plant construction in the future. The methodology used herein can be applied to other industries, and they can also provide a guide for governments to evaluate relative economic contribution and environmental impact on energy consumption and CO2 emission.