International trade and emissions: The case of the Minas Gerais state - 2005

- Examine the intensity of carbon dioxide emissions in the international trade
- The model was constructed from a hybrid regional input-output table.
- The main export activities in the state are intensive in CO2.
- State's major trading partners are mainly consumers of the carbon intensive sectors.

In this paper, we present a hybrid regional input-output model that enables us to compute the intensity measures of CO2 emissions in the state of Minas Gerais. The analysis uses a 2005 input-output matrix and presents the disaggregated data for 35 sectors. The results suggest that the sectors of Agriculture, Mining, and Metallurgy are key sectors for emissions, and that Petroleum and Alcohol, Nonmetallic Minerals, and Mining are the activities that consume more carbon per US$ million sold. We also analyze the trading partners of the European Union, the United States, China, and Argentina. The findings indicate that they are net importers of the carbon generated by Minas Gerais.