A Comparative Analysis of Intersectoral CO2 Emission and Energy Consumption Linkages using the Environmental and Energy Input-Output Models in Türkiye

CO2 emissions are at the top of the global agenda nowadays due to their pollution effects on the environment and climate change. Efforts to mitigate sectoral CO2 emissions undoubtedly require a shift towards renewable energy sources in production processes. Inter-sectoral linkage analysis reveals how sectors can stimulate each other’s production, energy consumption, and CO2 emissions, thereby identifying sectors with the highest potential impact. The main purpose of this study is to reveal the important and key sectors for the output, energy consumption, and CO2 emissions, which are defined as the primary indicators in Türkiye. Inter-sectoral linkage coefficients of the primary indicators are estimated using the Hypothetical Extraction Method (HEM) from both supply and demand sides. The study uses environmental and energy input-output models. The 2014 national input-output table and sectoral CO2 emissions and energy consumption data are obtained from the World Input-Output Database (WIOD) for Türkiye. Firstly, in this study, food, land transport, non-metallic minerals, metal, trade, mining, and electricity and gas are found to be sectors with strong linkages. Then, construction and textiles are found to be the sectors that are indirectly responsible for the total CO2 emissions of the economy. The latest finding is that land transport occupies a pivotal role in the interconnection of the agricultural, industrial, and service sectors. Increasing the share of renewable energy sources in the energy consumption of the aforementioned sectors and their interconnected industries should be the policy priority to contribute efforts against climate change and mitigate the imported energy dependence of Türkiye.