Trade, Energy, and Carbon Dioxide: an Analysis for the Two Economies of Ireland

March 4, 2013

Journal of the Statistical and Social Inquiry Society of Ireland, Vol. 41, 2011-2012, pp. 153-172

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In this paper we use a subsystem input-output decomposition analysis to examine the drivers of greenhouse gas emissions in the Republic of Ireland and in Northern Ireland. We use a bi-regional input-output analysis to look at how greenhouse gases in one region can be emitted as a result of demand in an exporting region. Looking at emissions generated throughout the island of Ireland, we find that emissions driven by demand in Northern Ireland are larger than those it generates, and vice-versa for the Republic of Ireland. We then use the input-output tables to simulate the effect of imposing a ?15/tonne carbon tax in the Republic of Ireland. We find that this causes a decrease in final demand in the Republic of Ireland, and a decrease in output in both the Republic of Ireland and in Northern Ireland; the decrease is greater in the Republic as the domestically produced share of inputs is much larger than the imported share in all sectors.

Author(s)
Anne Jennings
Richard Tol
Research Area(s)

Publication Details

Publisher

Statistical and Social Inquiry Society of Ireland

Place of Publication

Dublin

Date of Publication

March 4, 2013

ESRI Series

Journal Article