CO2 emissions of the construction sector in Spain during the real estate boom: Input-output subsystem analysis and decomposition

The construction sector is of special interest within the Spanish economy, given its large economic dimension and environmental impact, particularly during the real estate boom prior to the last economic crisis that started in 2008. We study the CO2 emissions of construction activities in 2007, at the height of the construction boom, in the context of the productive structure of Spain. For this, we use an input-output subsystem method, which allows us to study the productive structure of the subsystem's activities, taking into account its links with the rest of the sectors. The decomposition of total emissions in four explanatory components allows us to make a classification of the different sectors according to the type of relationships that are established between the subsystem and the rest of the economy. Besides providing a better understanding of the environmental consequences of real state booms, we derive some implications for environmental policy from the analysis of these interrelations.

Automated summary

The study examines the CO2 emissions of construction activities in 2007 in Spain, during the peak of the construction boom, using an input-output subsystem method. By decomposing total emissions into four explanatory components, the study classifies different sectors based on their relationships with the rest of the economy. The analysis of these interrelations provides insights for environmental policy implications.