Identification of the key sectors that produce CO2 emissions in Malaysia: application of input–output analysis

Abstract

An important challenge for many countries in the quest for a responsible, low-carbon economy is identifying the key economic sectors responsible for CO2 emissions and understanding what national initiatives might be appropriate to address these emissions, taking into account the role played by different production sectors and their relationship with other sectors and atmospheric pollution. In this paper, we apply input–output analysis to identify the key economic sectors that produce CO2 emissions in Malaysia from the production perspective, and we identify the sectors that should receive more consideration for mitigation policies. Results indicate the primary key sectors that demonstrated strong distribution and total effects were the energy and transportation sectors. Whether to use demand- or supply-side measures to mitigate CO2 emissions is discussed in the conclusion.