Carbon emissions drivers in Brazilian regional production chains: Value-added and consumption-based approaches

Abstract

This article aims to analyse carbon emissions in Brazil by decomposing consumption and income-based structural factors from 2011 to 2018. It utilizes environmentally interregional input-output models to quantify these factors. The findings reveal an imbalanced pattern of carbon generation, with economically prosperous regions driving emissions due to demand and supply factors. Production structure and economic activity are key drivers of CO2 emissions on the consumption and value-added side. Wealthier areas in Brazil, known for diverse and value-added production, have lower emission-intensive industries. However, those areas economically benefit from emissions generated by resource-intensive sectors in less prosperous regions. These findings highlight the need to distribute emissions responsibility spatially and implement measures to penalize regions benefiting from primary factor utilization. By promoting equitable environmental responsibility, policies can encourage sustainability and discourage emissions concentration in economically advantaged areas.