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Methodological Research for SDG Indicator 9.4.1: CO₂ emission per unit of value added

Year: 2025
Author: Ma. Salvacion B. Pantino

Abstract:

This methodological study proposes a localized method for estimating Sustainable Development Goal (SDG) indicator 9.4.1 (CO₂ emissions per unit of value added) for the whole Philippine economy and its manufacturing sector. A literature review identified key emission drivers, with fuel combustion for electricity and heat production as the dominant source. Industrial growth, particularly in manufacturing, is linked to policies promoting foreign direct investment (FDI), while GDP expansion correlates with rising coal-related CO₂ emissions. These patterns highlight the need for stricter carbon emission policies and legislation to curb carbon leakage from foreign investments. Estimates of SDG 9.4.1 from 2000–2022 show a gradual decline for the whole economy but an upward trend for manufacturing based on proxy variables.

Keywords:CO₂ emissions, value added, SDG.9.4.1, carbon leakage, whole economy, manufacturing sector

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