Carbon footprint analysis considering production activities of informal sector: The case of manufacturing industries of India

This study estimates an input-output table for India that distinguishes between the formal and informal sectors in 25 manufacturing industries to investigate the informal sector's contribution to the national carbon footprint (CO2 emissions embodied in supply chains). The proposed table reflects the differences in terms of input structure and carbon emission intensity between each industry's formal and informal sectors. The results showed that the informal sector in several industries contributed significantly to the carbon footprint of the top three supply chains with larger CO2 emissions in India. The study suggests that environmental policymakers target the informal sector and identify the actors involved in achieving CO2 emission reduction in the informal sector.