Measuring greenhouse gas footprints in global production networks: New perspectives on emissions embodied in production chains and final demand patterns

Norihiko Yamano, Michel Lioussis and Agnès Cimper

No 2024/12, OECD Science, Technology and Industry Working Papers from OECD Publishing

Abstract: This study builds on previous comparisons of production- and demand-based carbon dioxide (CO2) emissions by introducing new greenhouse gas (GHG) footprints indicators for 76 economies, based on global production networks. The extended indicators include: i) measures that, beyond CO2 emissions from fuel combustion, account for CO2 from industrial processes and other GHGs such as methane, nitrous oxide and fluorinated gases; ii) evaluation of demand-based emissions by category; and iii) combination of direct production-based emissions (System of Environmental-Economic Accounting residence principle) with upstream and downstream indirect emissions to estimate “Scope 3 emissions” by industry. Total GHG footprint indicators, compared to CO2-only footprints, show smaller differences in emissions intensities between OECD and non-OECD economies, due to the inclusion of non-CO2 emissions from Agriculture, Mining and Waste management. These indicators support policy analyses for decarbonising manufacturing, transitioning to renewable energy sources, and adjusting cross-border trade for high-carbon products.

Keywords: Final expenditure categories; Greenhouse gas footprints; Inter-Country Input Output (ICIO) tables; International trade; Production- and Demand- (or Consumption-) based Greenhouse Gas accounting (search for similar items in EconPapers)
JEL-codes: C67 F18 F64 Q56 (search for similar items in EconPapers)
Date: 2024-12-16
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