Economic Growth, Sectoral Structures, and Environmental Methane Footprints

57 Pages Posted: 6 Nov 2019

See all articles by Octavio Fernandez-Amador

Octavio Fernandez-Amador

University of Bern

Joseph F. Francois

University of Bern - Department of Economics; Centre for Economic Policy Research (CEPR); Vienna Institute of International Economic Studies (WIIW); University of Adelaide - School of Economics

Doris Oberdabernig

Austrian Institute of Economic Research (WIFO)

Patrick Tomberger

University of Bern - World Trade Institute

Date Written: October 2019

Abstract

We analyze the impacts of economic growth on methane emissions per capita at the sectoral level for the period 1997-2014. We cover three stages of the supply chain, distinguishing between emissions embodied in production, final production, and consumption. We investigate the effects of economic growth on two components of methane emissions per capita, namely methane emissions per unit of value added and value added per capita. We uncover substantial heterogeneity across sectors. Economic growth led to expansions of economic activity in all sectors but reduced the methane intensity of sectoral value added in some sectors. In sectors that experienced pronounced reductions in methane intensity, economic growth did not strongly affect emissions per capita. However, in the absence of large methane-intensity gains, economic growth raised emission per capita substantially.

Keywords: economic growth, methane emissions, sectoral analysis, threshold estimation

JEL Classification: F18, F64, O44, Q54, Q56

Suggested Citation

Fernandez-Amador, Octavio and Francois, Joseph F and Oberdabernig, Doris and Tomberger, Patrick, Economic Growth, Sectoral Structures, and Environmental Methane Footprints (October 2019). CEPR Discussion Paper No. DP14081, Available at SSRN: https://ssrn.com/abstract=3478778

Joseph F Francois

University of Bern - Department of Economics ( email )

Schanzeneckstrasse 1
Bern, CH-3001
Switzerland

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Vienna Institute of International Economic Studies (WIIW) ( email )

Oppolzergasse 6
A-1010 Vienna
Austria

University of Adelaide - School of Economics ( email )

Adelaide SA, 5005
Australia
+61 8 8303 5540 (Phone)
+61 8 8223 1460 (Fax)

Doris Oberdabernig

Austrian Institute of Economic Research (WIFO) ( email )

P.O. Box 91
Wien, A-1103
Austria

Patrick Tomberger

University of Bern - World Trade Institute ( email )

Hallerstrasse 6/8
Berne, CH-3012
Switzerland

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