Economic structure and key sectors analysis of greenhouse gas emissions in Uruguay

Using input–output analysis, we identify the key sectors in greenhouse gas

(GHG) emissions of the Uruguayan economy.

The responsibilities of each sector in terms of its emissions are

decomposed into an own component, generated during the activities of the

sector, and an indirect component, generated by the induced activities in

other sectors. This has important implications for the design of mitigation

polices, as the appropriate policy measures are contingent on the nature of

the pollution. Technical improvements and best practices are effective only

when applied to directly polluting sectors, while demand policies may be

more appropriate for indirectly polluting sectors. In addition, we analyze

pollution generated during the production of exports. The results show that

demand policies are going to be effective in the Building, the Hotel and

restaurants, and the Wholesale and retail trade; and repair of motor

vehicles and motorcycles sectors. These policies complement GHG emissions’

mitigation policies in directly polluting sectors (mainly the Cattle

farming and the transport-related sectors). Finally, methane and nitrous

oxide emissions are mainly the consequence of production for exports, while

carbon dioxide emissions are mainly driven by production for domestic

consumption.