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We analyse the nitrogen oxide gas emissions of different productive sectors in Spain. Using input–output analysis, we study all sectors as subsystems of the economy and decompose into different components the total (direct and indirect) emissions generated by their final demand. This analysis provides guidance on the type of policies that should be developed in the different sectors with the aim of mitigating nitrogen oxide emissions. Some sectors that seem less important when looking at their direct emissions turn out to be highly relevant in terms of their total emissions. The results indicate that demand policies can be effective in these sectors, especially in construction, but also in some service sectors that do not appear to be important polluters at first sight. These policies can complement technical improvements applied to directly polluting sectors. [ABSTRACT FROM AUTHOR]

Abstract: The analysis of input–output subsystems provides a useful tool for studying the productive structure of the different sectors of an economy. In this paper we develop this analysis to the study of the CO2 emissions associated to the group of branches of the service sector. The decomposition of the total production of the services subsystem allows us to decompose the CO2 emissions into five different components (own, demand volume, feed-back, internal and spill over components). From the results obtained, we can highlight the different roles played by the different branches of services. Transport activities are the services with the highest level of the direct emissions generated in the production of the sector. These activities are required by the other sectors of the economy to a greater degree than they are for their own final demand. Therefore, the production sold to other sectors causes more emissions than its own final demand. However, in the case of other service activities, direct and indirect emissions related to final demand are much more important, due to the strong pull effect of service activities on other activities of the economy. In this respect, Wholesale and retail trade, Hotels and restaurants, Real estate, renting and business activities, and Public administration services should be highlighted. These services receive scarce attention in the design of policies aimed at reducing emissions, but are notably responsible for the major increase in emissions experienced in recent years. [Copyright &y& Elsevier]

• Input-output subsystem analysis based on Ghosh model is developed. • This supply-driven model is extended to study the subsystem's GHG emissions. • An empirical analysis of GHG emissions applied to transport sector is carried out. • The supply-driven model is complementary of the demand-driven model. • Both models better identify activities responsible for the subsystem emissions. We develop an input–output subsystem analysis based on the Ghosh model to study the emissions of a sector given the productive structure of the economy. Our method complements the traditional subsystem analysis based on the demand-driven model by considering the emissions associated to the primary inputs of the subsystem. This is particularly relevant to study the emissions associated to the activity of sectors that produce mainly for other sectors. We apply both methodologies to analyze the transportation and storage subsystem emissions in Spain in 2014. The outcomes from the demand-driven model point to land and air transport as the main responsible for subsystem emissions, while the supply-driven model also considers storage sector as significant in explaining the subsystem emissions. When intermediate demand is relevant, the consideration of both models helps to better identify the activities responsible for the subsystem emissions, allowing for more accurate policy recommendations. [ABSTRACT FROM AUTHOR]