A combined input-output and sensitivity analysis approach to analyse sector linkages and CO2 emissions

This paper proposes a methodology which identifies the main productive linkages between activity branches in terms of CO2 emissions and applies this methodology to the Spanish case. It suggests that emissions are related to the input-output productive relationships within an economy, to the CO2 emissions intensity of sectors and to the structure of final demand of different sectors. A formal analysis of these factors is carried out by means of an input-output framework combined with sensitivity analysis and lineal programming. The most CO2 emissions-intensive productive relationships in Spain are shown. This consideration of the main linkages contributes to the identification of the key-sectors and facilitates the design of effective policy measures aimed at CO2 emissions abatement.