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.

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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).

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