The materiality of the immaterial: Service sectors and CO2 emissions in Uruguay

This paper analyzes the carbon dioxide emissions of the service sector

subsystem of Uruguay in 2004. Services, with the exception of transport,

are often considered intangible because of their low level of direct

emissions. However, the provision of services requires inputs produced by

other sectors, including several highly material-intensive sectors.

Through input–output analysis we investigate the relationship between the

service subsystem and the rest of the economy as regards carbon dioxide

emissions. This approach allows us to study the importance of the set of

services branches as a unit in the economic structure as well as to analyze

in detail the relationship between the branches. The results depict that

services' direct emissions are the main component, as a consequence of

transport related sectors. However, the pollution that the service

subsystem makes the rest of the economy produce is very significant, and it

is almost all explained by non-transport related sectors. This analysis is

useful for determining the sectors in which mitigation policies are more

effective, and whether they would be better tackled through technical

improvements and better practices or through demand policies.