Enormous inter-country inequality of embodied carbon emissions and its driving forces in South America

Abstract

South America is a crucial developing region under significant pressure to reduce emissions and achieve carbon neutrality. This study fills a vital gap by comprehensively analysing the continent’s carbon emissions from both production and consumption perspectives. Utilizing the most up-to-date global Multi-Regional Input-Output (MRIO) models, we examine the emissions embodied in the internal and external trade of nine major South American countries, tracing the emission flows from their origins to final consumers and analyzing the socio-economic drivers behind these patterns. Our analysis reveals that regions bearing heavier burdens of energy-intensive production often face exacerbated economic disparities. Trade-related emissions are embodied in heavy industry and transportation, and the share of emissions attributable to developing countries is continuously climbing. Brazil is the sole net-exporter of emissions, while Colombia has become a significant net importer. Energy intensity offsets the increase in carbon emissions caused by per capita consumption, especially in Brazil. Meanwhile, Colombia experiences an increase in emissions due to its energy structure, whereas a general trend towards decreasing emissions is noted elsewhere. The impact of the industrial chain is mainly domestic and extends forward along the supply chain. Interestingly, the consumption structure reduces emissions in Argentina and Bolivia, but increases them in other countries. Key emission mitigation initiatives include Brazil enhancing its leadership in bioenergy, Chile intensifying the development of green industrial chains for high-emission sectors, and Uruguay advancing its wind energy projects to increase clean energy exports, etc. These measures could facilitate targeted and effective decarbonization while promoting equitable and sustainable economic development across South America.