Structural Changes in Chile’s Industries to Reduce Carbon Dioxide (CO2) Emissions: An Emissions Multiplier Product Matrix Analysis (eMPM)

Abstract

Most countries in the world have agreed to reduce their emissions following the COP21 agreement in Paris, and as a result, each nation has presented suitable plans to do so. Chile is not an exception in this regard. This article examines the emissions of Chilean industries using the emission multiplier product matrix (eMPM), a cutting-edge method that estimates the pollution caused by inter-industrial activity in the country’s regions by integrating CO2 emissions with multi-region input–output table (MRIO) databases and elasticities. This approach connects the major emissions-producing sectors to the regions where these emissions come from, thereby accounting for existing interregional linkages. The application of technology, along with adequate state regulation in compliance with Chile’s pledges, acquired following the COP25 call, will decide the level of improvement in emissions reduction.