2021 (18), №2

Assessment of the Carbon Footprint of the Industries and Economic Sectors in Uzbekistan by Using the Input-Output Method

For citation: 

Chepel, S. V. (2021). Assessment of the Carbon Footprint of the Industries and Economic Sectors in Uzbekistan by Using the Input-Output Method. Zhurnal Economicheskoj teorii [Russian Journal of Economic Theory], 18(2), 254-264. https://doi.org/10.31063/2073-6517/2021.18-2.7

Abstract:

Analysis of global economic development after the Paris Agreement of 2015 shows that the measures taken to prevent global warming are insufficient. It is highly likely that a number of developed countries, striving to implement more effective measures to mitigate climate change, will introduce a carbon tax starting from 2022. As a result, Russia, Uzbekistan and other countries whose export structure is dominated by hydrocarbons or energy-intensive products will incur significant costs when promoting these products on the world market. These risks can be limited if these countries take more active climate-related measures, including carbon regulation, which requires the development of a methodology for assessing the carbon footprint. This article reviews the existing approaches to the assessment of the carbon footprint. As a result, it is concluded that the most promising approach to solving this problem is the input-output method. The case of Uzbekistan is used to show that not only industries that use fossil fuels (electricity, metallurgy, etc.) but also a number of service industries that are not directly related to the consumption of hydrocarbons have the largest carbon footprint. A tax scale is proposed to determine the carbon tax rate as one of mechanisms to encourage producers to modernize their manufacturing equipment and to reduce the negative impact on the environment. The article also contains recommendations on how to prevent an increase in the tax burden on enterprises when introducing a new carbon tax.

PDF full
Downloaded: 51

Sergey V. Chepel — Doctor of Economics, Chief Researcher, Institute of Forecasting and Macroeconomic Research under the Ministry of Economic Development and Poverty Reduction of the Republic of Uzbekistan (Tashkent, the Republic of Uzbekistan; e-mail: swchep@mail.ru).

Makarov, I. A., Chen, H., & Paltsev, S. V. (2018). Posledstviya Parizhskogo klimaticheskogo soglasheniya dlya ekonomiki Rossii [Impacts of Paris agreement on Russian economy].  Voprosy ekonomiki [Voprosy ekonomiki], 4,  76–94. (In Russ.)

Makarov, I. A., & Sokolova, A. K. (2014). Otsenka uglerodoemkosti vneshney torgovli Rossii [Carbon emissions embodied in Russia’s trade].  Ekonomicheskiy zhurnal VShE [HSE Economic Journal], 18(3),  477–507. (In Russ.)

Morozov, M. et al. (2020). Kak novyy uglerodnyy nalog Evrosoyuza udarit po rossiyskomu eksportu [How the new EU carbon tax will hit Russian exports].  The Bell [The Bell].  Retrieved from: https://thebell.io/kak-novyj-uglerodnyj-nalog-evrosoyuza-udarit-po-rossijskomu-eksportu (Date of access: 29.11.2020). (In Russ.)

Sugak, E. V. (2020). Ustoychivoe razvitie i ekologicheskaya bezopasnost’ promyshlennykh regionov Rossii [Sustainable development and environmental safety of industrial regions of Russia].  Regional’naya ekonomika i upravlenie: elektronnyy nauchnyy zhurnal [Regional economics and management: electronic scientific journal], 3(63).  Retrieved from: https://eee-region.ru/article/6302/ (Date of access: 10.12.2020). (In Russ.)

Umnov, A. et al. (2020). Uglerodnyy sled kak indikator vozdeystviya ekonomiki na kli-maticheskuyu sistemu [Carbon footprint as an indicator of the impact of the economy on the climate system].  Vestnik RGGU: Seriya «Ekonomika. Upravlenie. Pravo» [RSUH/RGGU BULLETIN. Series Economics. Management. Law], 2,  85–93. DOI: https://doi.org/10.28995/2073-6304-2020-2-85-93. (In Russ.)

Chepel, S. V. (2019). Metod «Zatraty-vypusk» v analize i prognozirovanii: sushchestvu-yushchie podkhody i novye vozmozhnosti [Input-Output Method in Analysis and Forecasting: Existing Approaches and New Opportunities].  Zhurnal Ministerstva ekonomiki i promyshlennosti «Ekonomika: analiz i prognozy» [Journal of the Ministry of Economy and Industry “Economy: Analysis and Forecasts”], 2,  82–102. (In Russ.)

Chepel, S. V. (2017). Indikatory i usloviya ustoychivosti razvitiya: rezul’taty mezhstranovykh sopo-stavleniy [Indicators and conditions for sustainable development: results of cross-country comparisons].  Sovershenstvovanie mer i mekhanizmov po ukrepleniyu makroekonomi-cheskoy stabil’nosti, obespecheniyu ustoychivogo razvitiya i povysheniyu konkuren-tosposobnosti natsional’noy ekonomiki: materialy VIII Foruma ekonomistov [Improving measures and mechanisms to strengthen macroeconomic stability, ensure sustainable development and increase the competitiveness of the national economy: materials of the VIII Forum of Economists].  Tashkent: IPMI, 15–30. (In Russ.)

United Nations Environment Programme (2020).  Emissions Gap Report 2020 — Executive summary.  Nairobi, 101.

Miller, R. E, & Blair, P. D. (2009). Environmental Input–Output Analysis.  Input-Output Analysis Foundations and Extensions.  New York: Cambridge, University Press. Second Edition, 446–494.

 Handbook on Supply, Use, and Input-Output Tables with Extensions and Applications  (2018). Final draft prior to official editing. New York, 599.

Taylor, L. (1990).  Socially relevant policy analysis: structuralist computable general equilibrium models for the developing world.  Cambridge (Mass.); London: MIT press, 379.

Thissen, M. A (1998). Classification of Empirical CGE Modelling.  Research Report 99C01,  University of Groningen, Research Institute SOM (Systems, Organisations and Management).

Wang, Z, Wei, S., Zhu, K., & Yu, X. (2017). Measures of Participation in Global Value Chains and Global Business Cycles.  NBER Working Papers,  23222. Cambridge, MA: National Bureau of Economic Research.