The materiality of the immaterial. Services sectors and CO2 emissions in Uruguay

Abstract

This paper analyzes the carbon dioxide emissions of the services sectors 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 materialintensive sectors. Through input-output analysis we investigate the relationship between the services 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 services 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.