How does the establishment of an Indonesian Environmentally Extended Input Output (EEIO) model pave the way for Indonesia’s carbon future?

Abstract

This study performed the Indonesian EEIO model development by using the Indonesian economic I/O table and Indonesian energy balance. This study also emphasized the importance of considering Scopes 1, 2, and 3 CO₂ emissions. Based on this analysis, Indonesia’s total embodied CO₂ emissions in 2016 from 185 sectors were 533 million tons, mostly driven by fossil fuel usage. Considering the economic activities and transactions, sectors like ‘services’, ‘mining’, and ‘metal & heavy industries’ stand out due to their high emission intensity per unit of output. The CO₂ emissions intensity for ‘services’, ‘metal & heavy industries’, and ‘mining’ were 2,306, 605.68, and 580.71 kg CO₂/million IDR, respectively. Meanwhile, based on annual total CO₂ emissions, ‘services’, ‘energy’, and ‘building, road & construction’ sectors contribute the most to the country’s total CO₂ emissions. They emitted 113, 90, and 89 million tons of life cycle CO₂ emissions based on EEIO analysis. Finally, the Indonesian EEIO framework established in this study offers a valuable tool for policymakers to mitigate climate change while pursuing economic goals.

Keywords

Indonesian Environmentally Extended Input Output (EEIO) / Carbon footprint / Life cycle CO₂ emissions / Emission’s Scope

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