ABSTRACT

We use a Global Multi-Region Input-Output Model in order to analyze the drivers of consumption-based GHG emissions. This work implies that a) efficiency effects have been historically mostly successful and should be continued where possible until limits are reached and b) policy must tackle the strong growth of affluence effects if it is going to reduce emissions, as the large growth in consumption per capita counteracts gains in efficiency. Trade could allocate production to more efficient countries to reduce resource use and pollution, but historically the effect of trade has been to increase energy and combustion GHG footprints in developed economies.