COVID-19 Recovery Packages and Industrial Emission Rebounds: Mind the Gap

Côme Billard and Anna Creti
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Côme Billard: LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique, LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique
Anna Creti: LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique

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Abstract: Meeting the net-zero climate target by 2050 has become a priority for the European Commission. The success of such objective largely depends on the design of COVID-19 economic recovery plans. In this paper we identify industrial sectors that, if governments are willing to decouple economic growth and emissions, should not benefit from recovery stimuli. Our results suggest that phasing-out the mining sector, a large provider of inputs to heavy polluting activities, would have large impacts on emissions once activity recovers. We also identify coke and refined petroleum products, chemical products and electricity and gas activities as critical downstream industries. Greening their output would limit GHG rebound effects in the coming months.

Keywords: COVID-19 economic recovery; GHG emissions; Input–output; Networks (search for similar items in EconPapers)
Date: 2021
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Published in Energy Transition, Climate Change, and COVID-19, pp.15-43, 2021, ⟨10.1007/978-3-030-79713-3_2⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04312231

DOI: 10.1007/978-3-030-79713-3_2

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