Structural decomposition analysis of Brazilian greenhouse gas emissions

This paper aims to verify the long run structural changes in Greenhouse Gas (GHG) emissions in Brazil which presents the particularity of high emissions in the agriculture and livestock sectors, and low emissions in energy sectors. We use an additive Structural Decomposition Analysis (SDA) to verify the sectorial changes in emissions derived from the effects of economic intensity, final demand structure effect and technological change by component i.e., household consumption, exports, gross fixed capital formation, government consumption, inventory change and total final demand. The database is composed of a series of input-output matrices at constant prices for the period 2000–2017, with comparable production structure of 42 sectors. Our results show that agriculture had the most remarkable effects on emissions, followed by industry sectors for all SDA effects and components except for inventory change. Finally, we discuss relationships between energy, GHG emissions and production structure towards development policies to reduce emissions and improve energy use.