Manufacturing costs and carbon taxes: The case of Chile
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During the last 30 years the Chilean´s economy has experienced a tremendous growth rate. From 1990 to 2009 the country grew at a rate of 5.05 % on average, becoming one of the most important economies in Latin America. This situation has implied an outstanding develop of buildings, industries, transportation, general services, among others. It also has implied an increase in pollution. Chile’s rank in carbon dioxide emissions from the consumption of fossil fuels is 50th worldwide. In 2009, Chile emitted 62.55 million metric tons of carbon dioxide while the world´s emissions reached 30,400 million metric tons approximately. In per capita terms, Chile has a high ranking of carbon dioxide emitted as well: it accounts for 4.3 tons of carbon dioxide per person. This makes Chile the 5th highest per capita emitter in Latin America. The transportation, energy and manufacturing industries are largely responsible for the majority of the CO2 emissions in the country. Manufacturing industry is one of the main sources of carbon dioxide emissions into atmosphere in Chile. In 2011 manufacturing industry represented the 21% of total CO2 emissions from fuel in the country. It is also one of the biggest sectors in Chile: in 2013 it accounted for a 12% of total Value-Added and it also accounted for a 12% of total employment. These facts reflect why we are focusing our attention on manufacturing.