Environmental management in Japan: Applications of input–output analysis to the emission of global warming gases

Environmental management requires, among other things, the incorporation of environmentally friendly technologies into production processes of environmentally friendly technologies into production processes at the producer level and the adoption of energy consumption patterns which save energy use at the household level. The systemwide approach involving both technology choice and consumer preference seems particularly essential for controlling the total emission of global warming gases. CO₂ and other global warming gases, as well as certain pollution causing gases, are produced when fossil fuels are burnt; and the consumption of fossil fuels occurs in both the production and consumption of goods and services. In this paper we discuss how input–output analysis can be used to estimate the entire production and consumption of global warming gases conditional on production technology and consumer preferences. We also present estimation results and their application to some environmental management issues in Japan.