Input-Output Analysis of Philippine Sectoral CO2 Emissions
Raymond R. Tan, Ph.D.1, Joel Q. Tanchuco, M.A.2
1Center
for Engineering and Sustainable Development Research; 2Economics Department
De La Salle Unviersity-Manila, 2401 Taft Avenue, 1004 Manila, Philippines
1Tel/Fax: +632-536-0260; Email: tanr_a@dlsu.edu.ph; Website: http://www.geocities.com/natdnomyar/web
140
120
100
80
60
40
Government
Private services
Real estate
Finance
Trade
Transportation
Utilities
Construction
NOMENCLATURE
B = environmental emissions matrix
g = inventory vector
I = identity matrix
y = final demand vector in EIO model
Z = technology matrix in EIO model
Manufacturing
0
Mining
20
Agriculture
WHAT IS EIO-LCA?
Economic input-output analysis was developed by Leontief
to quantify interactions within economies [1]. The method
has been extended in the context of life cycle assessment to
estimate direct and indirect emissions or resource use [2, 3].
160
kg CO2 per 1000 pesos
SUMMARY – Economic input-output (EIO) models
combined with life cycle assessment (LCA) are used to
estimate direct and indirect CO2 emissions of different
economic sectors in the Philippines. These results allow for
comparison of carbon intensities of different sectors per unit
of GDP contribution.
Figure 1. Carbon intensities of 11 major sectors
100%
Indirect
Direct
COMPUTATIONAL MODEL
Emission balances can be computed for EIO-LCA using:
80%
60%
g = B (I – Z)–1 y
(Eq.1)
40%
DISCUSSION
Figures 1 and 2 show the carbon intensities per thousand
pesos output and emissions contributions of the 11 major
economic sectors based on the 2000 input-output tables [4]
and sectoral direct carbon emissions [5]. Table 1 shows the
major indirect contributors for each of the sectors. For eight
of the sectors, direct emissions account for just 20 – 40% of
life cycle carbon releases. In the case of the utilities,
transportation and real estate sectors, direct emissions are
the dominant contributors.
CONCLUSIONS
The utilities and transport sectors are the most carbonintensive sectors of the Philippine economy; direct emissions
account for the bulk of the environmental flows for both. In
addition, these also account for most of the indirect
emissions of most of the other economic sectors.
REFERENCES
[1] Leontief, W. 1970. Environmental repercussions and the economic
structure. Review of Economics and Statistics 52: 262 – 271.
[2] Heijungs, R. and Suh, S. 2002. The computational structure of life cycle
assessment. Kluwer, Dordrecht.
[3] Hendrickson, C. T., Lave, L. B. and Matthews, H. S. 2006. Environmental
life cycle assessment of goods and services. An input-output approach. RFF
Press, Washington, DC.
[4] http://www.nscb.gov.ph/io/default.asp.
[5] http://earthtrends.wri.org/pdf_library/country_profiles/cli_cou_608.pdf
Government
Private services
Real estate
Finance
Trade
Transportation
Utilities
Construction
Manufacturing
Agriculture
0%
Mining
20%
Figure 2. Contributions for 11 major sectors
Table 1. Sources of Indirect Carbon Emissions
SECTOR
MAJOR INDIRECT CONTRIBUTORS (>10%)
Agriculture
Manufacturing, Utilities
Mining
Utilities
Manufacturing
Utilities, Transportation
Construction
Manufacturing, Utilities, Transportation
Utilities
None
Transportation
None
Trade
Utilities, Transportation
Finance
Utilities, Transportation
Real estate
None
Private services
Manufacturing, Utilities, Transportation
Government
Utilities
ABOUT THE AUTHORS
Dr. Raymond R. Tan is an associate professor of the Chemical Engineering Department of De La
Salle University-Manila. He has worked on environmental systems modelling at the Center for
Engineering & Sustainable Development Research since 2003. He received the 2004 OYS
Award for his research on the life cycle analysis of alternative motor vehicle fuels.
Joel Q. Tanchuco is an assistant professor of the Economics Department of De La Salle
University-Manila. He specializes in energy and environmental economics. He can be contacted
via email at tanchucoj@dlsu.edu.ph