GHG emission intensity parameters

Table of contents

This document describes the emission intensity coefficients that are used in models that fully articulate the generation of Greenhouse Gases (GHGs).

GHGs in G-Cubed

Four different greenhouse gases are accommodated by the versions of G-Cubed models that provide a full articulation of GHGs. These are:

  • Carbon dioxide (CO2)
  • Methane (CH4)
  • Nitrous oxide (N2O)
  • Fluorinated gases (F-gases)

The various gases are introduced into the model in CO2-equivalent terms. The CO2-equivalent emissions are calculated by multiplying the emissions of each gas by its Global Warming Potential (GWP) factor. The GWP factors are taken from the IPCC’s Sixth Assessment Report (AR6).

Emission drivers

Emissions of each of the four gases are associated with:

  • Household consumption
  • Government spending
  • Production by firms

The emissions associated with production by firms are further disaggregated into emissions that scale with:

  • the value of other intermediate goods in the production process
  • the value of labor in the production process
  • the value of capital in the production process
  • the value of output generated by the production process

Emission intensities

Scaling factors are required to determine the gas emissions generated by each of these economic activities. These scaling factors are referred to as emission intensities.

For each of the four gases:

  • For households, each region has an emission intensity for each of the goods consumed.
  • For government spending, each region has an emission intensity for each of the goods that the government purchases.
  • For each sector in each region there is an emission intensity for:
    • each of the intermediate goods that are produced
    • the labor used in production
    • the capital used in production
    • the output generated by the production process

All of these emission intensities are estimated based upon GTAP data in the reference year.