Economic Activity and Climate Change in a Structural Framework: A First Approach

The considerable increases in greenhouse gases emissions and the subsequent climate changes are directly associated with the current rates of economic growth. As a result, the increasing environmental problems should result in an effort to accurately measure and control climate changes. In the present paper, we propose a theoretical inter-industry model for analyzing how economic activity, by industrial sector, affects the climate. We believe that the proposed methodology could be utilized for the feedback of the policy formulation procedure and could provide a vehicle for expanding conventional climate change analysis in economics.