Towards Environmental Sustainability: An Input-Output Analysis to Measure Industry-Level Carbon Dioxide Emissions in Egypt

Egypt's average share of global carbon dioxide emissions has been rising from mid-1990s to date. This motivates the present study to identify industries that drive carbon dioxide emissions (as direct emitters and as total emitters with high emission multiplier effects). Environmental input-output analysis is applied to Egypt's 2017-2018 input-output table to measure sectoral emissions. The industries identified as high emitters are linked to Egypt's achievement of Sustainable Development Goals, namely, Goals 7, 8, 9, 12, and 13. The findings indicate that ten industries qualify as environmentally degrading (dirty), having the highest emission multiplier effects (in descending order): electricity, gas, and water; non-metallic mineral products; basic metals; rubber and plastic products; chemicals and chemical products; paper and paper products; food products; hotels and restaurants; transportation and storage; and textiles. Eight of these industries also have high output multiplier effects. This underscores that although potential investment in and the growth of these industries will generate output multiplier effects, they will also be coupled with emission multiplier effects. Five other industries had high emission multipliers, as follows: water and sewerage; beverages; coke and refined petroleum products; extraction of crude petroleum; and mining of metal ores. The growth of these industries would not be in favor of the achievement of SDGs. Policy measures are recommended.