Environmentally Extended MRIO-SDA Analysis on India’s \(\text {CO}_2\) Emissions During 2005–2014

To understand and combat global environmental issues, there is a rapidly growing interest in using Multi-Regional Input-Output Analysis (MRIO) and Structural Decomposition Analysis (SDA). However, the methodology tends to be rigorous, creating a significant barrier to the use of such techniques by researchers in the field. This paper aims to provide a detailed framework which can be used to conduct an environmentally extended MRIO-SDA analysis while employing open-source data and packages. This foundation enables an examination of the trends in and the drivers of India’s total change in \(\text {CO}_2\) emissions for 2005–2014. The results are consistent with the existing literature—India is a net exporter of \(\text {CO}_2\) emissions with sectors like Manufacturing, Electricity, Commercial and Public Services and Construction engendering considerable change in emissions embodied in trade. Moreover, the demand effect is the most significant contributor to the rise in India’s total emissions. Replication material is available in the Supplementary Section.