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Related Experiment Videos

Are services better for climate change?

Sangwon Suh1

  • 1Department of Bioproducts and Biosystems Engineering, College of Food, Agricultural and Natural Resource Sciences, University of Minnesota, 2004 Folwell Avenue, Saint Paul, Minnesota 55108, USA. sangwon@umn.edu

Environmental Science & Technology
|December 6, 2006
PubMed
Summary
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Greenhouse gas (GHG) emissions from U.S. supply chains are significant, with services contributing substantially to overall emissions when consumption is considered. Shifting to a service economy may lower emission intensity but increase absolute GHG emissions.

Area of Science:

  • Environmental Science
  • Economics
  • Industrial Ecology

Background:

  • Greenhouse gas (GHG) emissions are a critical factor in climate change.
  • Understanding the full lifecycle emissions, including supply chains, is essential for effective climate policy.
  • The U.S. economy is increasingly service-oriented, necessitating an analysis of its GHG footprint.

Purpose of the Study:

  • To analyze the embodied GHG emissions and supply-chain structure for 480 goods and services in the U.S.
  • To quantify direct and supply-chain-induced GHG emissions per dollar of output.
  • To assess the impact of household consumption of services on total U.S. GHG emissions.

Main Methods:

  • Analysis of embodied GHG emissions for 480 goods and services.

Related Experiment Videos

  • Calculation of supply-chain-induced emissions for 44 GHGs.
  • Quantification of GHG emission intensities per dollar output for products and services.
  • Assessment of household consumption patterns and their contribution to industrial GHG emissions.

    • Main Results:

    • Producing $1 of goods/services generates 0.36 kg CO2 equivalent onsite, rising to 0.83 kg with supply chains.
    • Services have lower direct and supply-chain GHG intensities than physical products.
    • Household consumption of services (excluding utilities/transport) drives 37.6% of U.S. industrial GHG emissions.
    • A service-oriented economy decreases GHG intensity per GDP but increases absolute emissions.

    Conclusions:

    • Supply-chain emissions significantly increase the GHG footprint of goods and services.
    • Household consumption of services is a major, often underestimated, contributor to GHG emissions.
    • Policy interventions must consider the full supply-chain and consumption impacts of economic shifts, particularly towards services.