Input-output modeling analysis with a detailed disaggregation of energy sectors for climate change policy-making: A case study of Saskatchewan, Canada

Abstract

Systematically evaluating the emission intensity and total emission of industries is indispensable for understanding energy and environmental sector performance in general and to support scientific climate change policy-making. In this study, an environmentally extended input-output (EEIO) model with a detailed disaggregation of energy sectors is developed to investigate the life-cycle environmental impacts of different industries. A special case study of the Province of Saskatchewan, Canada, is conducted to illustrate the potential benefits of its use in the environmental policy-making field. The I–O table is transformed and disaggregated based on the energy use patterns and the underlying economic structure. Key GHG emissions, including CO2, CH4 and N2O, are considered and the CO2 equivalent intensities of different economic sectors are calculated. An in-depth analysis of key industries is conducted to further investigate the interactions between different industries. It is founded that the Province of Saskatchewan is a trade exposed and emission intense economy. The emission intensity of agriculture is higher than the mean level, and is difficult to reduce due to the large farm machines used in agricultural production. Fossil-fuel electric power generation, as an intermediate input, has a strong effect on other industries and is a key factor for emission reduction.