Client: Ministry of Climate
Period: 2024
Estonia’s economy is small and open. We consume many imported products and, to balance this, we must also be able to export a lot. In the period following Estonia’s re-independence, economic policy was primarily focused on increasing added value and thereby improving export competitiveness. However, recently, reducing the environmental footprint and particularly greenhouse gas emissions has become increasingly important.
This paper seeks to answer the question of what the differences are in the carbon content of the added value of exports across different economic activities in Estonia. The added value of exports measures the economic value added to goods and services exported from Estonia. To calculate the added value of exports, the value of all goods and services produced in Estonia that are either directly exported or used as inputs in the creation of export goods and services is taken into account, subtracting the value of imported raw materials and intermediate goods.