Analyzing CO₂ emissions flows in the world economy using Global Emission Chains and Global Emission Trees

Because of the increasing international trade, monitoring tools are required that quantify and analyze CO₂ emissions at a global level. This paper contributes to this literature by adopting a consumer-oriented approach and using two tools based on Multi-Regional Input-Output tables, i.e., the Global Emissions Chains (GECs) and the Global Emissions Trees (GETs). The GEC is proposed with an industry-level perspective so as to provide detailed information about the extent to which the final demand of an industry of a country drives indirect CO₂ emissions by any industry of any other country. The GET is defined as a simplified graphical structure of the GEC, which includes only the industries providing the highest contribution of CO₂ emissions. The tools are described and new indices are developed with the aim of conducting multiple analyses with different purposes. Applications are given with specific emphasis to the different analyses that can be carried out. In particular, the GEC and the GET of a specific Italian industry are presented and comparisons with GECs and GETs of different countries are discussed. How to use the tools to develop more effective decarbonization strategies at both country and global levels is also described.