Classification of Industrial Sectors Based on Their Profiles of Greenhouse Gas Emissions and Policy Implications

Abstract

Purpose: This article reports on a study of greenhouse gases emitted by industrial manufacturing sectors and gives insights into the appropriate orientation of emission reduction public programmes for better efficiency.

Design/methodology/approach: For this study, a classification of industrial manufacturing sectors based on their greenhouse gas emissions profiles was performed. Using economic data on the consumption of energy sources and a conversion process to obtain an estimation of greenhouse gas emissions, a profile of the direct/indirect emissions, concentration of emissions, total emissions and electrification level of each sector was developed. Finally, the sectors were segmented into four groups.

Findings: The emissions profile of each of the identified sector segments features specific characteristics; therefore, public programmes promoting greenhouse gas reduction should be specific to each segment. Special attention should be given to the segment that features a large amount of emissions concentrated in a relatively low number of firms and a low level of electrification but appears to use public funds disproportionate to their emissions