Environmentally Extended Social Accounting Matrix (ESAM) for Climate Change Analysis in India

Abstract

This paper describes concept and construction of environmentally Extended Social Accounting Matrix (ESAM) for India for 2006-07. In our ESAM, there are 35 sectors, 9 household occupational categories. The ESAM shows inter relationship between the economic activities as well as their impact on GHG emissions and depletion of natural resources. The ESAM multiplier helps us to analyse direct and indirect-induced impact of growth in sectoral output on GHG emission. Sometimes researchers rely on the direct relationship between the economic activity and GHG emissions but their indirect and induced impact must be incorporated to see economy wide impact on GHG emission. In case of paddy the direct effect on GHG emission (6tons/rupees lakh of output) is substantially lower than their indirect and induced effect (32 tons/rupees lakh of output). Also this study shows that growth in service sector in India will not cause significant total impact on GHG emission.