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Using input–output analysis, we identify the key sectors in greenhouse gas (GHG) emissions of the Uruguayan economy. The responsibilities of each sector in terms of its emissions are decomposed into an own component, generated during the activities of the sector, and an indirect component, generated by the induced activities in other sectors. This has important implications for the design of mitigation polices, as the appropriate policy measures are contingent on the nature of the pollution. Technical improvements and best practices are effective only when applied to directly polluting sectors, while demand policies may be more appropriate for indirectly polluting sectors. In addition, we analyze pollution generated during the production of exports. The results show that demand policies are going to be effective in the Building, the Hotel and restaurants, and the Wholesale and retail trade; and repair of motor vehicles and motorcycles sectors. These policies complement GHG emissions’ mitigation policies in directly polluting sectors (mainly the Cattle farming and the transport-related sectors). Finally, methane and nitrous oxide emissions are mainly the consequence of production for exports, while carbon dioxide emissions are mainly driven by production for domestic consumption. [ABSTRACT FROM AUTHOR]

This paper analyzes the carbon dioxide emissions of the service sector 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 material-intensive sectors. Through input–output analysis we investigate the relationship between the service 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 service 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. [ABSTRACT FROM AUTHOR]