In this paper, input-output and SAM-based multiplier models are formulated to
identify the main emitters of direct, indirect, and induced carbon dioxide (CO2) for the
Mexican economy. The models are based on a social accounting matrix for Mexico, with
disaggregated household income and consumption patterns according to the official
poverty line. The results show that the final users of the inputs that embody high
levels of CO2 emissions are the next five sectors: (1) construction; (2) electricity,
gas, and water supply; (3) inland transport; (4) food, beverages, and tobacco; and (5)
coke, refined petroleum, and nuclear fuel. The findings suggest that the implementation
of a carbon tax could damage poor families, since these families generate high direct,
indirect, and induced CO2 emissions per unit of income, as a consequence of their
consumption patterns of fuels and the products that embody high CO2 emissions levels
(for example, agriculture, hunting, forestry, and fishing).
JEL Classifications:
C58, I3, Q21, Q56