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Carbon Dioxide Emissions Reductions in New Zealand: A Minimum Disruption Approach - WP 04/25

3  Fuel Use and Carbon Content in New Zealand

This section outlines the data and approach used to evaluate the expressions, derived in the previous section, for New Zealand.

The “Inter Industry Study of 1996” from New Zealand’s System of National Accounts provided inter-industry flows in value terms for a 49 industry group classification (IGC).[7] These flows were divided by each industry’s gross output to produce the direct requirement coefficients which were then collected to form the matrix.

By subtracting each industry’s intermediate output from their gross output, the Accounts were also used to compile the 49-element vector of final demands.

The matrix was constructed from New Zealand’s Energy Flow Accounts which provided the energy use arising from the fossil fuels, expressed in physical terms (PJs), for the year ended March 1996 based on the Energy Account Industry Classification (EAIC). The translation between the Energy Account Industry Classification (EAIC) and the 49 industry group classification (IGC) which was used for the analysis is provided in Table A1. Only those fuels for which at least one industry recorded a positive expenditure were incorporated, which provided nine fossil fuels for analysis. Table A2 provides information about the demands for these fuels which are expressed in physical terms and based on the 49 industry group classification (IGC). Dividing these figures by each industry’s gross output provided the required elements of the matrix.

Compiling the 9-element vector of carbon dioxide emissions entailed obtaining data from multiple sources. Table 1 outlines the carbon dioxide emission factors for each of the nine fossil fuels analysed, along with their sources.

Table 1– Carbon Dioxide Emission Factors: Tonnes / PJ
Fuel CO2Emissions Source
Coal 90,010 Statistics NZ (1993, Table 4.5, p21)
Lignite 95,200 Statistics NZ (1993, Table 4.5, p21)
Crude Petroleum 65,100 Taylor et al (1993, Table 6.6, p35)
Natural Gas 52,600 MED (2003, Table A.1.1, p114)
LPG 60,400 Baines (1993, Table 5.7, p30)
Petrol 66,600 Baines (1993, Table 6.6, p35)
Diesel 68,700 Baines (1993, Table 6.6, p35)
Fuel Oil 73,700 Baines (1993, Table 6.6, p35)
Aviation Fuels & Kerosene 68,700 Baines (1993, Table 6.6, p35)

The resulting values of , and were used to calculate the 49-element vector of carbon dioxide intensities, using the expression derived in subsection 2.1. The results of this calculation are provided in Table A3.

It is not surprising that petroleum and industrial chemical manufacturing (industry no. 18), which demands the greatest quantity of fuel across all industries, recorded by far the highest carbon content of 3.64 tonnes of carbon dioxide per dollar of gross output. Rubber, plastic and other chemical product manufacturing (industry no. 19) and basic metal manufacturing (industry no. 21) which respectively demand the largest quantities of natural gas and coal record similarly high carbon contents of 1.83 and 1.40 tonnes of carbon dioxide per dollar of gross output. The only other industry to record a carbon content in excess of 1, was electricity generation and supply (industry no. 26) with 1.21.

Notes

  • [7]This is the most recent year for which the data are available.
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