Characterization of Greenhouse Gases Emissions by Economic Sectors Using Environmentally Extended Input-Output Analysis (EEIOA)

Abstract

Objectives : As climate change deepened, the concept of 2050 carbon neutrality was introduced. The COP 26 Glasgow Agreement strengthened the national greenhouse gases (GHGs) target of 2030. However, there are controversies over the feasibility of these GHGs reduction goals, considering the economic sectors energy policy and the attributes of GHGs emissions. Taking this into consideration, this study aimed to formulate the 2017 Environmentally Expanded Input-output Table to analyze the characteristics of GHGs emissions in Korea's economic sectors.Methods : The carbon dioxide emission was calculated by multiplying carbon dioxide emission factors to fuel consumption in the 2017 energy balance table, while other GHGs emissions are taken from the national GHGs inventory. All the GHGs emissions calculated and taken were allocated to 381 basic sectors of the Input-Output Table to represent each sector's characteristics of GHGs emissions. Then 381 sectors are combined into a large category of 35 sectors to formulate the 2017 Republic of Korea Environmentally Extended Input-Output Table (ROKEEIOT). Using this ROKEEIOT, the emission of Scope 1. 2, and 3 by economic sectors were estimated, and the GHGs emissions and GHGs intensity by economic sectors.Results and Discussion : The carbon dioxide emissions calculated by the 2017 ROKEEIOT prepared in this study showed a difference of 2% from the 2017 national GHGs emission statistics, confirming that the 2017 ROKEEIOT is very effective. The three economic sectors with the highest direct GHGs emissions were electricity, steam, chilled or hot water, air conditioning supply (262,280 kt CO2eq.), primary metal products (117.098 kt CO2eq.), and transportation equipment (58,332 kt CO2eq.). However, the total GHGs emissions were different in the order of construction (151,476 kt CO2eq.), transportation equipment (112,168 kt CO2eq.), computer, and electronic and optical instruments (107,868 kt CO2eq.). As a result of classifying the scope of GHGs emissions, 6 industries exceeded 50% in Scope 1, and 29 sectors exceeded 50% in Scope 3, indicating that GHGs reduction measures were necessary for the supply chain in consideration of the GHGs emissions characteristics by economic sectors. In particular, 41.68% of GHGs emissions induced by final demand were generated by exports confirming, confirming the urgent need to strengthen the carbon competitiveness of export industry in preparation for the introduction of the carbon border adjustment mechanism.Conclusion : The economic contribution, direct GHGs emissions of industries, and the amount of GHGs emissions induced by supply chains and value chains show very different patterns by economic sectors. Therefore, it was confirmed that scientific policies to reduce GHGs emissions, such as net-zero and climate change measures, should reflect the characteristics of Scope 1, which is direct emission by industry, Scope 2 emissions caused by electricity and steam consumption and scope 3 emissions generated along the supply chain or value chain.