Applying the hypothetical extraction method to investigate the interindustry greenhouse gas emissions linkages in the Greek economy

Abstract

ABSTRACT This paper examines the interindustry greenhouse gas (GHG) emissions linkages within the Greek economy for the year 2018, using a symmetric I-O table and air emissions accounts data. The GHG linkages among industries are analyzed both from a demand and supply perspective by applying an environmental modification of the Dietzenbacher and van der Linden’s Hypothetical Extraction Method (1997), as introduced and discussed in Tsirimokos (2022). The findings reveal that: (i) the ‘Electricity, gas, steam, and air conditioning supply’ industry exhibits the highest total absolute backward and forward linkages; (ii) the ‘Real estate activities’ industry demonstrates the highest relative backward and forward linkages; (iii) industries with low (high) relative linkages generally, exhibit high (low) internal linkages; and (iv) the ‘Electricity, gas, steam, and air conditioning supply’ and ‘Transportation and storage’ industries are the primary GHG emissions contributors within the Greek economy. These empirical results can inform the development of effective environmental policies, supporting Greece in achieving its climate action plan objectives.