Identifying the Main Emitters of Carbon Dioxide in Mexico: A Multi-Sectoral Study

Abstract

In this paper, input-output and SAM-based multiplier models are formulated to identify the main emitters of direct, indirect, and induced carbon dioxide (CO2) for the Mexican economy. The models are based on a social accounting matrix for Mexico, with disaggregated household income and consumption patterns according to the official poverty line. The results show that the final users of the inputs that embody high levels of CO2 emissions are the next five sectors: (1) construction; (2) electricity, gas, and water supply; (3) inland transport; (4) food, beverages, and tobacco; and (5) coke, refined petroleum, and nuclear fuel. The findings suggest that the implementation of a carbon tax could damage poor families, since these families generate high direct, indirect, and induced CO2 emissions per unit of income, as a consequence of their consumption patterns of fuels and the products that embody high CO2 emissions levels (for example, agriculture, hunting, forestry, and fishing). JEL Classifications: C58, I3, Q21, Q56