Relevant sectors in CO2 emissions in Ecuador and implications for mitigation policies

Abstract

We analyse the relationship between the economic structure and CO2 emissions from fossil sources for Ecuador, a small developing country that exports raw materials. We use an input–output method to identify the relevant economic sectors in CO2 emissions. Sectoral emissions are decomposed into an own component (emitted directly by its productive process) and an induced component (induced by its interrelation with other sectors). We use the input–output table for 2013 and construct a highly disaggregated vector of CO2 emissions based on fossil energy consumption. The results show that 19 economic sectors (from a total of 71) are relevant in CO2 emissions, of which 8 are classified as key sectors: transportation, refined petroleum, crude oil, electricity, trade services, construction, public administration services and telecommunication services. Despite the last four sectors represent only 9.8% of direct CO2 emissions, they are indirectly responsible for 27.1% of total emissions due to their production chains. Our research orientates effective mitigation policy, as it makes possible to determine which sectors, with a high own component of emissions, require measures such as technological improvements and best practices, and which sectors, with a high induced component of emissions, require intersectoral policies, depending on their supply or demand linkages.