Modified Gross National Income (GNI*) is a deglobalised measure of economic activity. Greenhouse Gas (GHG) air emissions were 236 grams per euro of GNI* in 2021, a volume decrease of 31% from 2012.
Output measures the value of all goods and services produced. GHG air emissions were 69 grams per euro of Output in 2021, a value decrease of 53% from 2012.
Gross Value Added (GVA) measures the added value generated in the economy by the production of these goods and services. GHG air emissions were 137 grams per euro of GVA in 2021, a volume decrease of 51% from 2012.
Output, GVA and GNI* grew in value by 113%, 153%, and 84% respectively between 2012 and 2021 while GVA and GNI* grew in volume by 106% and 46%.
GHG air emissions were estimated to be 1% higher in 2021 than in 2012. The COVID-19 pandemic affected the level of industry GHG air emissions in 2020 and 2021, particularly for air transport. The 2019 GHG air emissions were 18% higher than in 2012.
In part due to the highly globalised nature of the Irish economy, both the total Output and GVA air emission intensities were among the lowest of EU Member States in 2021. The GNI* intensity was in the mid-range of EU Member States.
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Statistician's Comment
The Central Statistics Office (CSO) has today (17 February 2023) published a research paper Economic Intensity of Greenhouse Gas Emissions 2021.
Commenting on the publication, Mark Manto, Statistician in the National Accounts Integration Division, said: "Economic Intensity of Greenhouse Gas Emissions is a new research paper combining published economic data from the CSO National Accounts division with greenhouse gas (GHG) emissions data from the CSO Environment division. The effects on greenhouse gas emission intensities due to changes in the size and structure of the Irish economy are described in this release.
In summary, if we know the value of activity (output) or the value added associated with this activity (GVA) and we then combine this with the GHG associated with this same activity, we can calculate the economic emissions intensity of this activity. For example in grams CO2 equivalent per euro of activity or value added.
Material is also provided in constant prices to remove price effects. Additionally, comparable EU Member State data are also presented, placing Ireland in a European context. Published Eurostat GHG estimates for Ireland are used for 2021. This combination of existing data sources enables a novel insight into the intensity of emissions per euro of activity or added value.
Emissions and Activity
With increasing activity (output) an associated increase in air emissions could be expected. However, this relationship was not maintained over the 2012-2021 period, with the change in total economic output (activity) and value added not tracking the change in the level of air emissions. This change is particularly evident in the 2020 and 2021 estimates, which were affected by the COVID-19 pandemic.The highly globalised nature of the Irish economy is partly, though not wholly, responsible for this change seen over the period, as shown using a deglobalised measure of economic activity (GNI*) highlighting similar, though lower, changes in Ireland’s emission intensity.
Emissions by Output and Gross Value Added
Output, which measures the value of all goods and services produced, was €372 billion in 2012. This had more than doubled by 2021, increasing by 113% to €791 billion.
Gross Value Added (GVA), a measure of the added value generated in the economy by the production of these goods and services, was €159 billion in 2012. This had also more than doubled by 2021, increasing by 153% to €401 billion. The increase in GVA is, as for Output, in part a reflection of the highly globalised nature of the Irish economy.
Another measure is Modified Gross National Income (GNI*) which is a measure of economic activity that excludes many of the globalisation effects which disproportionally impact the measurement of the size of the Irish economy. GNI* was €127 billion in 2012 and showed a substantial increase by 2021, up by 84% to €234 billion.
To remove the effects of price changes, current price National Accounts estimates can be ‘deflated’ to constant prices. When measured in constant 2020 prices, GVA increased by 106% between 2012 and 2021 while GNI* increased by 46%.
Emissions by Industry and Intensity in Grams per Euro
GHG air emissions by industry, excluding the household sector, were 53,857 Final CO2 equivalent Kilotonnes in 2012. This was very similar to the 54,362 Final CO2 equivalent Kilotonnes estimated in 2021, a 1% increase. While the COVID-19 pandemic affected the level of industry emissions in 2020 and 2021, particularly for air transport, the 63,710 Final CO2 equivalent Kilotonnes estimated in 2019 represented an 18% increase from 2012.
Combining these data to produce economic emission intensity estimates, total air emissions were 145 grams per euro of Output in 2012. This had more than halved by 2021, when it fell to 69 grams per euro of Output, a decrease of 53%.
Similarly, total air emissions were 339 grams per euro of GVA in 2012. This had decreased by 60% by 2021, when it stood at 135 grams per euro of GVA. Total air emissions were 423 grams per euro of GNI* in 2012. This had reduced by 45% by 2021, when it stood at 232 grams per euro of GNI*. Prior to the pandemic, in 2019 it had fallen by 29% when it stood at 302 grams per euro of GNI*.
Using constant 2020 prices, total air emissions were 279 grams per euro of GVA in 2012. This had decreased by 51% by 2021, when it stood at 137 grams per euro of GVA. Total air emissions were 342 grams per euro of GNI* in 2012. This had dropped by 31% by 2021, when it stood at 236 grams per euro of GNI*. Prior to the pandemic, in 2019 it had declined by 11% to 304 grams per euro of GNI*.
Emissions by Sector
Furthermore, in these estimates the economy is split into 21 sectors (A21) to enable intensity comparisons across sectors. Care should be taken with such comparisons, particularly for sectors with low emission intensities. These intensity estimates are also provided for the period 2012 to 2021 allowing users examine trends over time. The underlying data are available in more detail (A64) allowing users to construct their own bespoke estimates for specific sectors of particular interest. This research paper release is, in part, a means to highlight to our users the type of comparative analysis which is possible using these publicly available published data.
For example, it is well known that the Agriculture, Forestry & Fishing sector (A) has the highest relative share of GHG air emissions and in 2021 contributed 1.4% of total Output, 1.1% of total GVA and an estimated 40.7% of non-residential GHG air emissions. However, some progress in emissions intensity is visible across the 2012-2021 time-series when examined by Output (78% of 2012 intensity) and GVA (46% of 2012 intensity). GVA in constant 2020 prices also showed an intensity improvement in 2021 (64% of 2012 intensity).
This contrasts with several other sectors, in part due to the highly globalised nature of the Irish economy and the influence of foreign-owned multinational enterprise (MNE) dominated sectors. For example, Manufacturing (C) contributed 34.6% of total Output, 36.8% of total GVA and an estimated 14.1% of non-residential GHG air emissions in 2021.
Irish Emission Intensities compared with the EU
In part due to the highly globalised nature of the Irish economy, both the total Output and GVA air emission intensities were among the lowest of EU Member States in 2021. Using GNI*, Irish emission intensities were in the mid-range of EU Member States in 2021. Ireland had among the largest percentage emission intensity decreases of EU Member States between 2012 and 2021. Irish sectors displayed large differences in intensity relative to EU averages.”
Note
Users should note that residence principle emissions are used in this release. Residence principle emissions are calculated from territorial principle emissions by removing transport emissions from non-resident units on the territory of Ireland, and by adding transport emissions by Irish resident units abroad. Residence principle emissions are compiled using the same principles and classifications as National Accounts to ensure compatibility with economic indicators.
These results describe NACE sectors and exclude households. The impact of the COVID-19 pandemic can be seen in the reduced GHG air emissions in 2020 and 2021 compared with 2019. This is almost entirely observed in the Transportation and Storage (H) sector (NACE 49-53), particularly in Air Transport (NACE 51).
Further details are available in the background notes of this release and in the pair of CSO publications from which these initial data have been sourced:
CSO National Accounts Division’s publication ‘Output and Value Added by Activity’ available at:
https://www.cso.ie/en/releasesandpublications/ep/p-naova/outputandvalueaddedbyactivity2021/
CSO Environment Division’s publication ‘Environmental Accounts Air Emissions’ available at:
https://www.cso.ie/en/releasesandpublications/ep/p-eaae/environmentalaccountsairemissions2020/