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Global Multiregional Input–Output Frameworks: An Introduction and Outlook
Abstract
This review is the introduction to a special issue of Economic Systems Research on the topic of global multiregional input–output (GMRIO) tables, models, and analysis. It provides a short historical context of GMRIO development and its applications (many of which deal with environmental extensions) and presents the rationale for the major database projects presented in this special issue. Then the six papers are briefly introduced. This is followed by a concluding comparison of the characteristics of the main GMRIO databases developed thus far and an outlook of potential further developments.
... Both PLCA and EE-IOA have seen a strong trends of increasing regionalisation (PLCA) (Mutel and Hellweg, 2009;Feifel et al., 2010;Frischknecht et al., 2019) or geographic resolution (EE-IOA), Towa et al., 2020;Wang et al., 2017;Huo et al., 2022). However, because of the granular nature of the process data, the geographical scope and resolution of PLCA databases have not caught up with the modern global MRIO models that have been developed over the last decade (Tukker and Dietzenbacher, 2013;Peters et al., 2011;Lenzen et al., 2012;Dietzenbacher et al., 2013;Stadler et al., 2018). In practice this means that although a region specific process descriptions are available in large Life Cycle Inventory (LCI) databases such as ecoinvent Wernet et al., 2016), most processes are only covered by generic 'global' or 'rest of world' (RoW) datasets. ...
... Hybrid methods, combining input-output and process data have been subject of active research for more than a quarter of a century (Bullard et al., 1978;Treloar, 1997;Lenzen, 2000;Suh et al., 2004;Lenzen and Crawford, 2009;Crawford et al., 2018, among others). Multi-regional input-output models covering the global economy however, have only been around for a much shorter time period with true Global Multi-Regional Input-Output (GMRIO) models only becoming readily available in the last decade (Tukker and Dietzenbacher, 2013;Peters et al., 2011;Lenzen et al., 2012;Dietzenbacher et al., 2013;Stadler et al., 2018). These GMRIO models provide regional specific supply chain information for industry-or product sectors along with the sectors' region specific impact factors. ...
... These GMRIO models provide regional specific supply chain information for industry-or product sectors along with the sectors' region specific impact factors. The advent of these GMRIO models did not only improve the accuracy of the calculation of national carbon footprints (Tukker and Dietzenbacher, 2013), it also allowed for the hybridisation of complete PLCA databases, using regional specific supply chain information (Agez et al., 2020). However, because of the lack of geographical resolution in PLCA databases, this potential has so far not been fully capitalised upon. ...
Hybrid- Life Cycle Assessments (LCA) mostly fails to fully exploit valuable information from Multi-Regional Input-Output (MRIO) models by aggregating regional supply chains to the lower geographical resolution of process LCA databases. We propose a method for sampling the various individual regions within the aggregated regional scope of LCA processes. This sampling not only maximises the information content of the hybrid LCA footprint results by preserving the regional variance, it also allows for using regional price distributions form BACI/UN-COMTRADE international trade statistics to simultaneously improve the accuracy of the hybrid model. In this work we analyse the impact of regional variance and the use of regional price distributions on the uncertainty of the hybrid footprint results for both the carbon (GWP100) and land use footprint and compare this to the variance resulting from price variance only and regional variance only. We find that the median process footprint intensity increases by 7 +18 − 3 % for the GWP100 due to hybridisation, and 90 +143 − 23 % for the Land Use footprint. Our results also show that the magnitude of the footprint uncertainty strongly depends on the product sector of the LCA process and environmental impact considered. Additionally, we illustrate the effect of regional variance and price distributions on a consumption footprint using a case study of Swiss household consumption. Here the truncation error estimates are 8 . 4 +9 . 2 − 2 . 7 % for the GWP100 and 36 +64-14 % for the land use footprint. The relative uncertainties of the truncation error correction are very high (110-178% for the upper limits) moreover the have a strong positive skew. Our results highlight the importance of regionalisation of process LCA databases, as it has the potential to significantly improve both the precision and accuracy of hybrid LCA models.
... Both PLCA and EE-IOA have seen a strong trends of increasing regionalisation (PLCA) (Mutel and Hellweg, 2009;Feifel et al., 2010;Frischknecht et al., 2019) or geographic resolution (EE-IOA), Towa et al., 2020;Wang et al., 2017). However, the different nature of process-and MRIO data have meant that the geographical scope and resolution of PLCA databases have not caught up with the modern global MRIO models that have been developed over the last decade (Tukker and Dietzenbacher, 2013;Peters et al., 2011;Lenzen et al., 2012;Dietzenbacher et al., 2013;Stadler et al., 2018). In practice this means that although a region specific process descriptions are available in large Life Cycle Inventory (LCI) databases such as ecoinvent Wernet et al., 2016), most processes in regions are only covered by generic 'global' or 'rest of world' (RoW) dataset, which are mostly extrapolations from a region specific process datasets elsewhere (Weidema et al., 2013). ...
... Hybrid methods, combining input-output and process data have been subject of active research for more than a quarter of a century (Bullard et al., 1978;Treloar, 1997;Lenzen, 2000;Suh et al., 2004;Lenzen and Crawford, 2009;Crawford et al., 2018, among others). Multi-regional input-output models covering the global economy however, have only been around for a much shorter time period with true Global Multi-Regional Input-Output (GMRIO) models only becoming readily available in the last decade (Tukker and Dietzenbacher, 2013;Peters et al., 2011;Lenzen et al., 2012;Dietzenbacher et al., 2013;Stadler et al., 2018). These GMRIO models provide regional specific supply chain information for industry-or product sectors along with the sectors' region specific impact factors. ...
... These GMRIO models provide regional specific supply chain information for industry-or product sectors along with the sectors' region specific impact factors. The advent of these GMRIO models not only improved the accuracy of the calculation of national carbon footprints (Tukker and Dietzenbacher, 2013), but allows for the hybridisation of complete PLCA databases, using regional specific supply chain information (Agez et al., 2020). However, because of the lack of geographical resolution in PLCA databases, this potential has so far not been fully capitalised upon. ...
Hybrid- Life Cycle Assessments (LCA) mostly fails to fully exploit valuable information from Multi-Regional Input-Output (MRIO) models by aggregating regional supply chains to the lower geographical resolution of process LCA databases. We propose a method for sampling the various individual regions within the aggregated regional scope of LCA processes. This sampling not only maximises the information content of the hybrid LCA footprint results by preserving the regional variance, it also allows for using regional price distributions form BACI/UN-COMTRADE international trade statistics to simultaneously improve the accuracy of the hybrid model. In this work we analyse the impact of regional variance and the use of regional price distributions on the uncertainty of the hybrid footprint results for both the carbon (GWP100) and land use footprint and compare this to the variance resulting from price variance only and regional variance only. We find that the median process footprint intensity increases by 7 +18 − 3 % for the GWP100 due to hybridisation, and 90 +143 − 23 % for the Land Use footprint. Our results also show that the magnitude of the footprint uncertainty strongly depends on the product sector of the LCA process and environmental impact considered. Additionally, we illustrate the effect of regional variance and price distributions on a consumption footprint using a case study of Swiss household consumption. Here the truncation error estimates are 8 . 4 +9 . 2 − 2 . 7 % for the GWP100 and 36 +64-14 % for the land use footprint. The relative uncertainties of the truncation error correction are very high (110-178% for the upper limits) moreover the have a strong positive skew. Our results highlight the importance of regionalisation of process LCA databases, as it has the potential to significantly improve both the precision and accuracy of hybrid LCA models.
... One of the main limitations of this type of analysis is the availability of solid Multi-Regional Input-Output (MRIO) datasets, able to cover a wide range of sectors and countries. In this sense, the publication of several MRIO databases at the country level revolutionised the Input-Output (IO) literature (Lenzen et al., 2013;Merciai and Schmidt, 2018;Remond-Tiendrez and Rueda-Cantuche, 2019;Stadler et al., 2018;Tukker and Dietzenbacher, 2013;Wood et al., 2014). These different IO tables have been widely used in the applied literature to analyse international trade flows and the globalisation of value chains (Antràs and Chor, 2018;Antràs and Gortari, 2020;Arto et al., 2019Arto et al., , 2014Espinosa-Gracia et al., 2023;Los et al., 2015;Timmer et al., 2013;Xu and Dietzenbacher, 2014). ...
... As commented, the publication of several C2C MRIO databases revolutionised the IO literature (Tukker and Dietzenbacher, 2013). Of special interest is the first World Input-Output Database (WIOD), which was developed for a project from the EU's 7th Framework Program. ...
This article contains the methodology and main results related to the update and extension of the widest Interregional Input‐Output Tables for the entire EU27, UK and the EFTA countries. This work gives continuation to the outstanding effort developed in the last years regarding the estimation and analysis of different Multi‐Regional Input‐Output (MRIO) databases at the country level (WIOD, EXIOBASE, ICIO, FIGARO, etc), and the MRIO tables developed for the EU at the NUTS2 level. The main contribution consists of updating and extending the current EUREGIO collection to obtain an EUREGIO table for 2017, which will be referred to the regions (NUTS‐2 Rev.2016) for all the EU27+UK+EFTA countries and will be embedded in the new FIGARO multi‐country 2017. Such effort was developed in the context of the ESPON‐IRIE project. This article summarizes the methodology used and compares the results obtained with the ones of the main benchmarks, providing an analysis about the national and regional participation in the Global Value Chains (GVCs). Main results suggest that, on average, 65% of value added is embodied in the goods and services sold to the same NUTS‐2 region, 16% is embodied in the ones sold to regions in the same country, and the remaining 20% is exported (to other countries). Exploring the heterogeneity within these figures also can be seen that the variety is higher across regions than across sectors. Our analysis suggests that, to a large extent, the heterogeneous participation of EU27+UK+EFTA regions in the GVCs is explained by their sectoral structure, more than by the regional idiosyncratic characteristics. Such results open the floor for the correct design of industrial policies, embedded in the smart specialization paradigm.
... Como se pondrá de manifiesto en los apartados segundo y tercero de este trabajo, el análisis input-output y la proliferación de tablas multirregionales (Tukker y Dietzenbacher, 2013; Comisión Europea, 2019) suponen un instrumento crucial de análisis para la toma de decisiones en materia de política económica que permitan mejorar nuestra productividad y las ganancias derivadas y retenidas en nuestro territorio a lo largo del proceso de producción. ...
... No obstante, el desarrollo más reciente de tablas input-output multipaís globales (Tukker y Dietzenbacher, 2013) ha permitido desarrollar una amplia literatura que propone varios métodos para descomponer las exportaciones de un país en las diversas contribuciones de otros sectores y países que contribuyeron a lo largo de todos los eslabones de la cadena de valor de un producto determinado (Arto et al., 2015;Dietzenbacher et al., 2013;Foster-McGregor y Stehrer, 2013;Johnson y Noguera, 2012;Koopman et al., 2014;Los et al., 2016;Nagengast y Stehrer, 2014, 2016Timmer et al., 2014). ...
Este trabajo propone dos nuevos indicadores para monitorizar la integración de Andalucía en las cadenas de valor globales basadas en la metodología de la OCDE: las tablas input-output multipaís de Eurostat (FIGARO) y las tablas input-output de Andalucía publicadas por el IECA. Los resultados indican claramente que, tanto en términos de empleo como de valor añadido incorporado en las exportaciones andaluzas, es el comercio con los países de la Unión Europea el que más beneficia a la región andaluza, a excepción del comercio con el resto de España, Grecia y Malta. Las exportaciones de I+D y de productos agrarios son las que mayor proporción de valor añadido retienen en Andalucía, siendo los productos energéticos los que menos.
... (1) MRIO. Global input-output databases have reached worldwide popularity in the last decade as a basis for environmental footprints accounting, such as World Input-Output Database (WIOD), EXIOBASE, Eora and Global Trade and Analysis Project (GTAP) [34,[45][46][47]. The four MRIO databases have been evaluated with regard to their comparability and consistency [48]. ...
... One example is Agriculture-an aggregated sector made up of crop production, fishing, forestry, etc. Moreover, due to the lack of access to official statistics, the Eora database for some small economies in BRI is far from satisfactory [45]. In other global MRIO databases such as WIOD, EXIOBASE and GTAP, these data-scarce countries are usually presented in an aggregated way (as part of the "Rest of world") [67]. ...
The growing water scarcity due to international trade poses a serious threat to global sustainability. Given the intensified international trade throughout the Belt and Road Initiative (BRI), this paper tracks the virtual water trade and water footprint of BRI countries in 2005–2015. By conducting a multi-model assessment, we observe a substantial increase in BRI's water footprint after taking water scarcity into account. Globally the BRI acts as a net exporter of virtual water, while the export volume experiences a decreasing trend. Noticeable transitions in nations' role (net exporters vs. net importers) are found between the BRI and global scales, but also between with and without considering water scarcity. Overall economic and population growth is major drivers of scarcity-weighted water footprint for BRI nations, as opposed to the promotion of water-use efficiency and production structure that can reduce water scarcity. Improving international trade and strengthening cooperation on water resources management deserve priority in alleviating the water scarcity of BRI.
... Due to growing heterogeneity of different regions and sectors, datasets with highly aggregated sectors or regions do not support accurate supply chain analysis, especially for emerging economies. Meanwhile, due to the difficulties of data collection and constraints of data compilation, many existing MRIO databases (Tukker & Dietzenbacher, 2013) do not release annual MRIO tables. This impedes the capacity to analyze historical data on supply chains and international trade patterns in order to forecast future trends. ...
... Various global multi-regional input-output (GMRIO) datasets have been developed (Andrew & Peters, 2013;Lenzen et al., 2013;Timmer et al., 2015;Tukker & Dietzenbacher, 2013;Tukker et al., 2009, along with classification systems and methods of analysis Wood et al., 2014). Currently, nine such databases are available, as summarized in Table 1: (1) Eora Lenzen et al., 2013); (2) EXIOBASE (extended version EXIOBASE 3rx (Bjelle et al., 2020;Stadler et al., 2018;Tukker et al., 2009 Chepeliev, 2020;Peters et al., 2011); (5) the OECD input-output database (OECD ICIO) (OECD, 2021); (6) Asian Development Bank MRIO database (ADB) ); (7) The Institute of Developing Economies, Japan External Trade Organization (IDE-JETRO) Asian international input-output tables (AIIOTs) (mainly focusing on the Asian Pacific economies (Meng et al., 2013)); (8) the full international and global accounts for research in input-output analysis (FIGARO) (mainly focusing on the EU (Rémond-Tiedrez & Rueda-Cantuche, 2018)); and (9) The global resource input-output assessment model (GLORIA) MRIO database (Lenzen et al., 2017(Lenzen et al., , 2021. ...
Multi‐regional input–output (MRIO) models are widely used to analyze the economic interdependencies between regions in the context of global trade and environmental research. MRIO tables enable us to teleconnect the sectors in different regions along the supply chain and track both direct and indirect impacts of global production. Yet emerging economies—despite reshaping international trade patterns and playing an increasingly important role in the world economy—are not adequately represented in existing MRIO databases, which lack key detail on countries and sectors. To bridge this gap, our study presents EMERGING: Up‐to‐date and full‐scale MRIO tables covering 135 sectors in 245 economies over the period from 2015 to 2019. We describe in detail the steps in the development of the database and reconciliation and validation of bilateral trade data and national statistics. The EMERGING database is also designed to incorporate more official and publicly available data from national statistical institutes to ensure a high level of data quality, especially for these economies. We compare both national production‐based and consumption‐based value added generated from the EMERGING MRIO with the results from four major MRIO databases. Although global value‐added accounts are similar across databases, we find significant discrepancies at the level of individual countries and sectors concerning conflicting benchmark data.
... The MRIO model was extended by Polenske (1970) and subsequently implemented widely scale in the United States by Polenske (1980). Tukker and Dietzenbacher (2013) point out a clear distinction between interregional and multiregional models. In the IRIO model, it is required to know the production flow from sector i in region m to sector j in region r. ...
... The lower information requirement in the MRIO model is achieved through the inclusion of a parameter that indicates the proportion of the production flow that region r receives from sector i in region m, and that is applied uniformly for each sector j of destination. Therefore, an MRIO model should be considered a special case of an IRIO model (Tukker and Dietzenbacher 2013). ...
The international community has reacted with surprising speed and unity to Russia’s ‘special military operation’ on Ukrainian territory through commercial and financial sanctions to achieve its economic isolation. This military action will change the relations between Russia and most world countries in ways that cannot yet be foreseen. This study analyzes the short-term effects of international trade interruptions on the economy, considering different isolation scenarios. The hypothetical extraction method and a multi-regional input-output model are used to simulate the economic effects on the production of 189 countries. The results show that the most affected country is Russia, with a drop in production of 10.1% in the scenario with sanctions from the European Union and 14.8% when the sanctions are also applied by Australia, Canada, Japan, United States, and the United Kingdom. The European countries with the greatest geographical proximity and strong trade flow with Russia suffer a significant drop in their production, including Lithuania, Latvia, Estonia, Finland, Hungary, and Poland. In Russia, the most affected economic sectors are Re-export & Re-import and Mining & Quarrying. Finally, the estimated impacts are a lower bound since the effects associated with financial sanctions, exchange rates, commodity prices, among others, are not considered.
... Regarding the connection between international trade and emissions, a large body of literature has explored the concept of both production-based (or territory-based) and consumption-based accounting (Peters, 2008, Hoekstra and Wiedmann, 2014, Kander et al., 2016. Similar applications can be found in relation to numerous environmental issues, including climate change, energy use, air pollution, material use, land use, biomass, water quality, and biodiversity (Wiedmann, 2009, Tukker andDietzenbacher, 2013). This accounting has considerable methodological and conceptual overlap with studies on "trade in value-added" in relation to GVCs (Johnson and Noguera, 2012, Koopman et al., 2014, Timmer et al., 2014. ...
This chapter presents a unified accounting framework for tracing CO2 emissions along GVCs at country, sector, and bilateral levels, which can be used to better understand the emission responsibilities of GVC participants in various roles, such as producers, consumers, exporters, importers, investors, and investees. We then demonstrate how this framework can provide useful insights for improving environmental policy design, climate change negotiation and green GVC governance, so that those benefiting from productive activities that generate emissions can bear a more appropriate share of the costs of emissions reductions. Our main findings include 1) Since 2001, developing economies have doubled their CO2 emissions from purely domestic value chains that serve their own final demands. These emissions are now about twice as large as those of developed economies. Given that GVCs are rooted in domestic sources, it is imperative to curb these emissions with more effective tools, such as environmental regulation, taxation, and the introduction of carbon trading schemes domestically. By greening their domestic production, developing economies can also green their exports via GVCs. 2) The carbon intensity of GVCs has decreased in both developed and developing economies between 1995 and 2021. However, creating GDP through international trade is still more carbon-intensive than doing that through purely domestic value chains. Therefore, it is important to introduce carbon pricing along GVCs to substantially raise the cost of emissions globally in the Paris Agreement era. 3) GVCs increase carbon leakage through both international trade and cross-border investment (e.g., FDI) channels. However, the current emission reduction targets do not explicitly and consistently account for the different roles and responsibilities of GVC actors, such as producers, consumers, exporters, importers, investors, and investees. This puts more burden on domestic firms than multinational enterprises (MNEs) for GVC-related emissions. Therefore, MNEs should play more active roles to fight climate
change along their GVCs.
... At the same time, these economies face multiple challenges, including population explosion, poverty, and climate change, which can be amplified in the supply chain 9,10 . However, due to difficulties in data collection and the constraints of data compilation, the existing multi-regional input-output (MRIO) databases do not reflect the connection with enough regional and sector details 46,47 , especially for emerging economies, which impedes the analysis of historical supply chains and international trade patterns, and the forecast of future trends. ...
Emerging economies, low- and middle-income countries experiencing rapid population and GDP growth, face the challenge of improving their living standards while stabilizing CO2 emissions to meet net-zero goals. In this study, we quantify the CO2 emissions required for achieving decent living standards (DLS) in emerging economies. The results show that, compared to other regions, achieving DLS in emerging Asian and African economies will result in more additional CO2 emissions, particularly in the DLS indicators of Mobility and Electricity. Achievement of DLS in emerging economies will result in 8.6 Gt of additional CO2 emissions, which should not jeopardize global climate targets. However, a concerning trend arises as more than half of the emerging economies (62 out of 121) will face substantial challenges in aligning their expected emission growth for achieving DLS with their national emission mitigation targets.
... Value chain activities lead to producing goods or services and can be contained within a single geographical location or spread over wider areas. Indeed, Tukker and Dietzenbacher [31] explain that value chain activities are generally multi-regional or global, given that they cross multiple national boundaries. ...
Abstract: Recent studies on the global value chain (GVC) have highlighted the need to better integrate the value chains of developing countries of the global South with that of the global North regions, which are more highly developed. This is aimed at enhancing the economic and social sustainable upgrading of the value chains of the global South regions. The paper thus seeks to answer a critical question as to whether the existing GVC set-up pertaining to global North and South countries
is equitable and whether it would yield the needed socio-economic and wider sustainable benefits, particularly to global South countries. a conceptual Global Value Chain (GVC) model is developed based on the economy-wide and system-based Multi-Regional Input–Output methodology to achieve this goal. Subsequently, this was empirically tested to measure embodied flows in capital and labour for sustainable development between global North and South regions. These are
achieved using the GVC networks of the UK (from the global North) and some countries in sub-Saharan Africa (from the global South) to exemplify these developments. With implications for equitable, sustainable development, our study shows significant imbalances exist in the flows of value added activities from the global South to the global North, particularly in the primary industries, which produce low-value products in their raw state. Subsequently, this creates a disproportionate economic disadvantage for South countries. As such, if global South countries are to fully benefit from GVC, the study shows that these imbalances must be addressed, such as through structural changes in the economies of global South countries from their dependencies on the primary industries.
... At the time of preparing the estimates which are used here, TiVA-OECD had not yet published its most recent version, and among those available, the two input-output matrices whose estimates for non-OECD countries show less variation relative to national input-output matrices are WIOD and TiVA. For a comparative analysis between the different multiregional input-output matrices seeTukker and Dietzenbacher (2013) andOwen et al. (2016). 9 Services have been aggregated into two groups in order to isolate the two most knowledge-intensive sectors (Consulting, programming and information services, and legal, accounting, and clerical activities). ...
This paper deepens the existing analysis of the Brazil’s integration into Global Value Chains by applying the decomposition methodology of gross exports proposed by Wang, Wei and Zhu (2018)WANG, Z.; WEI, S.; ZHU, K. Quantifying international production sharing at the bilateral and sector levels. USA: National Bureau of Economic Research, 2018. (Working paper series, 19677).. This decomposition method breaks down gross exports into several components corresponding to the domestic and foreign value added embedded in bilateral and sectoral exports, which allow an accurate characterization of the countries' participation into GVCs. Using data from the WIOD database for the period 2000-2014, we examine the Brazilian specialization for exports in value added for three of its main trading partners (China, the United States, and the European Union). The geographical and sectoral export profile analysis is of interest to Brazil since the country's commercial specialization differs significantly according to its partners.
KEYWORDS:
Global Value Chains; International fragmentation of production; Trade in Value Added; Brazil; Trading Partners
... For water consumption, data are often available at a higher level of resolution than the typical national classification used in input-output databases. In such cases, disaggregating the lower-resolution input-output database into the classification of the higher-resolution externalities data can improve the accuracy of assessments based on input-output analysis [33,39]. Table 1. ...
In many regions of the world, water consumption exceeds the limits of sustainable water use. A commonly used method to examine the relationship between global water consumption and production is input–output analysis. However, between approximately 70% and 90% of freshwater consumption occurs in agricultural primary production, which is often represented by only a small percentage of the total number of sectors in input–output databases. As a result, water-related assessments based on input–output analysis are limited in their accuracy and substance. In addition, the assessment of the impact of water consumption is usually carried out at the national level, which can further contribute to the imprecision of the results. Therefore, the primary objective of this work was to develop an approach to better assess water use and its impacts in input–output analysis. In order to achieve this objective, a novel approach was adopted by integrating a global spatial model of agricultural primary production (MapSPAM) into an existing input–output database via prorating. In addition, the utilisation of MapSPAM allowed the calculation of water environmental extensions with unprecedented accuracy. The resulting Input–Output Global Hybrid Analysis of Agricultural Primary Production (IO-GHAAPP) approach includes (1) a novel input–output database and (2) novel environmental extensions for freshwater consumption and scarcity. The IO-GHAAPP database consists of 150 categories and 164 regions, resulting in a total of 24,600 region–category combinations. Forty-two of the categories are dedicated to agricultural primary production (28%). In comparison, the source input–output data consist of 120 categories and 164 regions, resulting in a total of 19,680 region–category combinations, of which 14 are dedicated to agricultural primary production (12%). The Python code and IO-GHAAPP database are openly available via Zenodo. The IO-GHAAPP approach is presented in a comparative analysis of agricultural primary production, along with the associated water consumption and water footprint, at both the global level and for the United States and India. Both countries are among the most important in the world in terms of agricultural primary production as well as associated water consumption and water scarcity. Furthermore, the IO-GHAAPP approach is applied in a simple case study of Germany, which stands in contrast as one of the largest importers of agricultural primary production on a global scale. The results show that the IO-GHAAPP approach adds a valuable layer of information to the disaggregated input–output data, allowing crop-specific analyses to be carried out that would otherwise not be possible, e.g., for specific leguminous or beverage crops. The results are relevant to practitioners of input–output analysis who are concerned with the impacts of agricultural primary production and who need highly resolved data, as well as to policy-makers who rely on such studies. The demonstrated IO-GHAAPP approach could be extended to other externalities relevant to agricultural primary production, such as land use, soil degradation or pollution.
... Previous research has investigated theoretical and practical advantages of using the I-O model in industrial activities or specific economic sectors, as well as for analyzing interregional economic dependencies (Casler 2004;Zhu et al. 2022;Tukker and Dietzenbacher 2013;Zamani et al. 2018;Huang and Kockelman 2020;Yamano 2016;Mi et al. 2018). Aside from its advantages in calculating input and output in a national economy, it is also useful for regional contexts (van Leeuwen et al. 2005;Jensen et al. 2017;Shafer 2012;Budzinski et al. 2023). ...
The global COVID-19 pandemic has suppressed the economy and people’s welfare, including in Indonesia and Central Java Province, as indicated by the weakening of the national economy by −2.06 percent and locally by −2.65 percent in 2020. Although the economy grew by 3.32 percent in 2021, societal welfare remains lower than in 2019, marked by an increase in unemployment and poverty throughout 2019–2021. Furthermore, the threat of COVID-19 including new variants of the virus continues to weigh on the economy, in 2022 and beyond. This study considered an industrial approach to production, based on inter-industrial linkages and policy simulations with input–output analysis. The objectives of this research are to analyze the impact of the COVID-19 pandemic on the economy of Central Java and to formulate an effective economic recovery policy for industry. The results show that the industries affected by the COVID-19 pandemic in Central Java can promote recovery of overall income in economic industry better than the leading industry and the industries with the highest output multipliers, expressed as a proportional increase in final demand for each industry. Meanwhile, the economic recovery strategy of increasing final demand in industries with high output multipliers results in a faster increase in economic output compared with increasing final demand in the affected industries or leading industries.
... Há várias iniciativas no mundo para a construção de tal base de dados. Entre elas, pode-se citar as que fizeram parte da edição especial de revista Economic Systems Research (Tukker e Dietzenbacher, 2013), que publicou vários modelos insumo-produto multirregionais globais (GMRIO), considerando as extensões ambientais. ...
O objetivo deste estudo é analisar o comércio internacional dos países da América Latina sob os aspectos econômicos, energéticos, hídricos e de emissões de GEE. Para tanto, são calculados os referidos aspectos ambientais embutidos nas exportações e importações de bens e serviços a partir de matrizes insumo-produto ecológico-econômicas globais. São analisados também os benefícios das exportações com base na teoria kaldoriana. Os resultados mostram que a América Latina tem um saldo positivo na balança comercial, mas isso representa um aumento das emissões de GEE, de estresse hídrico e do consumo de energia. Esses indicadores podem ser usados como referência para identificar os melhores parceiros comerciais e as atividades econômicas mais sustentáveis na região.
... This requires an MRIO database with specific detail on each of the 27 EU member states: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden (Europa EU, 2020), as well as details on the rest-of-the-world (RoW, i.e. countries outside of the EU). The regional and sectoral composition of the RoW region varies across MRIO databases (Tukker & Dietzenbacher, 2013). In this study, we choose the GLORIA MRIO database that features specific details on 27 EU states and 137 other individual countries, with 97 sectors for each country, as showcased in an assessment for material footprints (M Lenzen et al., 2021). ...
Non-technical summary
Globalisation has narrowed the gap between producers and consumers. Nations are increasingly relying on commodities produced outside of their borders for satisfying their consumption. This is particularly the case for the European Union (EU). This study assesses spillover effects, i.e. impacts taking place outside of the EU borders, resulting from the EU's demand for food products, in terms of environmental and social indicators.
Technical summary
Human demand for agri-food products contributes to environmental degradation in the form of land-use impacts and emissions into the atmosphere. Development and implementation of suitable policy instruments to mitigate these impacts requires robust and timely statistics at sectoral, regional and global levels. In this study, we aim to assess the environmental and social impacts embodied in European Union's (EU's) demand for agri-food products. To this end, we select a range of indicators: emissions (carbon dioxide, particulate matter, sulphur dioxide, nitrous oxide), land use, employment and income. We trace these environmental and social impacts across EU's trading partners to identify specific sectors and regions as hotspots of international spillovers embodied in EU's food supply chains and find that these hotspots are wide-ranging in all continents. EU's food demand is responsible for 5% of the EU's total CO 2 consumption-based footprint, 9% of the total NO X footprint, 16% of the total PM footprint, 6% of the total SO 2 footprint, 46% of the total land-use footprint, 13% of the total employment footprint and 5% of the total income footprint. Our results serve to inform future reforms in the EU for aligning policies and strategies with the Sustainable Development Goals (SDGs) and the objectives of the Paris Climate Agreement.
Social media summary
Significant environmental and social spillover effects embodied in the EU's food supply chains.
... MRIO analysis can link environmental data to integrate environmental accounting into an economy using an extension known as environmentally extended input-output (EEIO) analysis, which can more realistically quantify environmental impacts within a whole economy from a life cycle perspective. Currently, several projects are producing global MRIO tables, such as the externality data and input-output tools for policy analysis (EXIOPOL), the global resource accounting model, the global trade analysis project, the world input-output database (WIOD), the multi-regional environmentally extended supply and use/input-output database (EXIOBASE), and Eora [26,27]. ...
For Japan to achieve its targets for carbon neutrality and reduction of carbon dioxide (CO2) emissions, decarbonization of road transport is essential. Japan regards next-generation vehicles, including hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), battery electric vehicles (BEVs), and fuel cell vehicles, as a key means of reducing carbon emissions from road transport. Four scenarios were proposed to predict the potential carbon emissions reduction of passenger car use in 2030: baseline, business-as-usual, government's target-based, and aggressive scenarios. Economic input–output life cycle assessment was used to evaluate potential CO2 emissions, acidification, eutrophication, human toxicity, and photochemical oxidation associated with passenger cars. In this study, all environmental impacts were calculated using the multi-regional environmentally extended supply and use/input–output database by applying the CML 2001 impact assessment method. The findings indicate that PHEVs have the lowest CO2 emissions per km traveled, followed by HEVs and BEVs. The prediction for carbon emissions from passenger cars shows that adopting electrified vehicles, such as HEVs, PHEVs, and BEVs could help decarbonize the passenger car sector. The population of vehicles, vehicle manufacturing, well-to-wheel cycle of fuel, and fuel economy will significantly contribute to CO2 emissions. Finally, this study recommends policies to steer Japan into achieving its goal of carbon neutrality.
... In this regard, regional policymakers in carbon footprint analysis have become interested in using the MRIO methodology. Nowadays, many initiatives have been done to integrate large-scale global MRIOs such as Externality Data National Accounts Statistics provides all tables of the WIOD (Tukker and Dietzenbacher, 2013). ...
... 8,9 A report by the United Nations Conference on Trade and Development stated that 80% of trade takes place in ''value chains'' linked to transnational corporations. 1 Meanwhile, the increasing complexity and uncertainty of GVCs has also created considerable difficulty in understanding ''who generates emissions or pollution for whom'' and in formulating policies that enable countries, industries, and firms to clearly identify their environmental responsibilities along GVCs. 10 Regarding the connection between international trade and carbon emissions, a large body of literature has explored the concept of ''consumption-based accounting,'' [11][12][13][14][15] with a heavy emphasis on carbon emissions transfers induced by developed countries' consumption of goods produced in developing countries via international trade. Similar applications can be found in relation to numerous environmental issues, including climate change, [16][17][18] energy use, 19 air pollution, 20,21 material use, 22 land use, 23 biomass, 24 water quality, [25][26][27] and biodiversity. ...
Carbon emissions associated with international trade are significant. The emergence of complex global value chains (GVCs) in recent decades, in which a country can operate as both a consumer and producer simultaneously, has led to a further rise in emissions. The complexity of these GVCs makes it increasingly difficult to determine what country is responsible for the emissions embodied within them. Here, we propose a new method based on input-output analysis to identify and distinguish self- and shared responsibility for CO2 emissions along GVCs, where self-responsibility describes emissions embodied in purely domestic value chains. Our results show that developing countries’ self-responsibility for CO2 emissions has been the largest driver in the growth of total GVC embodied emissions since 2001. Even considering the shared responsibility for emission transfers via GVCs, developing countries’ total responsibility has exceeded that of developed countries since 2012. We argue that climate negotiations should seriously consider GVC-based responsibility sharing to enable more effective climate policies.
... As the trade in intermediate products and dispersion of production processes have increased in global supply chains, it has become challenging to localising the place of production of different commodities Tukker and Dietzenbacher 2013). To determine environmental and social impacts of food production and consumption, precise knowledge on place of production and its conditions is needed . ...
Food systems are central to global sustainability, while being complex systems where places and people are intertwined over large distances and at different scales. Transformations towards sustainable food systems have been called for in both research and policy, and Sweden and the European Union have declared high ambitions to act as global leaders in these transformations. While food production in Sweden and the European Union is often portrayed as largely sustainable in a global context, the region is highly dependent on food imports, with relatively large environmental footprints globally. This thesis aims to explore transformative pathways towards sustainability, with a particular focus on sustainable food systems, in a Swedish and European Union context. The thesis specifically studies the following research questions: (1) What constitutes transformations towards sustainability, and in particular sustainable food systems, from the perspectives of Swedish stakeholders, including food system practitioners, and European Union policy frameworks? (2) What roles, responsibilities, and agency do Swedish stakeholders, including food system practitioners and European Union policy frameworks, attribute to different actors? (3) How can interconnections and accountability in global food systems be understood and governed in light of societal transformations towards sustainability? (4) What are the implications for transformative pathways towards sustainability? The thesis builds on four papers that use focus group methodology (PI and PII), involving Swedish stakeholders, including food-system practitioners, analyses of European Green Deal policies (PII and PIII), and quantitative investigation of phosphorus fertiliser use in Brazilian soybean production and related biodiversity impacts (PIV). Four overarching conclusions are drawn from the findings: (I) Shared goals and consensus are emphasised as essential, while a diversity of transformative pathways and understandings of challenges and priorities needs to be recognised, with attention being paid to how specific choices might include and exclude pathways and actors. (II) Emerging shifts in how food is valued open up opportunities for transformative change in which the ‘true’ cost of food is acknowledged, alongside a recognition of non-economic values of food, which presupposes alignment at the practical, political, and personal levels. (III) The identified pathways comprise public accountability regimes, incentives for more sustainable consumption, regulations to reduce resource use and impacts of food production. (IV) The attribution of accountability to trading operators in the accountability regime proposed by the European Union highlights an extended focus from food production and consumption towards regulating flows and intermediate actors in food systems.
... In this regard, regional policymakers in carbon footprint analysis have become interested in using the MRIO methodology. Nowadays, many initiatives have been done to integrate large-scale global MRIOs such as Externality Data National Accounts Statistics provides all tables of the WIOD (Tukker and Dietzenbacher, 2013). ...
The Hungarian transport sector plays a significant role in economic development. Inland transport, air transport, and water transport are the main three modes of moving people and goods in Hungary. Therefore, these three modes affect the environment by contributing a significant amount of carbon and energy footprint. In the literature, there is no such study that identifies the environmental impacts of the Hungarian transport sector. Therefore, the lifecycle-based carbon and energy footprint impacts of Hungarian transport practices were assessed in this study, which took into account international trading links with the rest of the world. The Hungarian economy was modeled as part of a multi-region input-output (MRIO) life cycle evaluation system, which included 40 major economies, including the Hungarian, United States, China, Russia, and others and the rest of the world (ROW) nations. According to the WIOD database definition, each country's economy comprises 35 major industries. The global system of the world economy is equalized by a total of 1435 sectors (41 × 35 = 1435). The method is unique in that the MRIO model was constructed in a stochastic manner, taking into account global trade-related uncertainties. Using data mining and predictive simulation methods, the investigation focused on top carbon-emitting and energy-consuming sectors and countries. The outcome illustrated that Hungary has the highest overall carbon footprint (CFP) and total energy footprint (EFP) contributions, respectively, with 59.94% and 45.18%. Furthermore, the inland transportation market and electricity, gas, and water supply were found to be the most dominant industries in terms of overall CFP, accounting for 46.32% and 18.35%, respectively. With 34.64% of the overall effects, the coke/refined petroleum/nuclear fuel market has the highest proportion of the total energy footprint. The transportation sector has a significant role in the Hungarian economy because of the unique geographic location of the country. In another word, road and train modes are considered the dominant mode of moving goods in Hungary. Therefore, the inland transportation market is the highest contributor sector to the total share of CFP and ranked second in sharing the EFP.
... To improve the robustness of input-output analyses, scholars have repeatedly advocated the development of input-output databases with a high resolution [9,[65][66][67]. This endeavour was also formulated by Wassily Leontief [9] who suggested that "a distribution of all [. . . ...
Input-output analysis has become a widely established method in sustainability sciences. It is primarily used in macroeconomic footprint analyses for allocating an economy’s externalities among the agents in that economy based on the agents’ input-output interdependencies. However, databases for input-output analyses are commonly compiled by aggregating data. Aggregation of input-output data inevitably leads to a loss of information and in some instances can lead to misinformed decision-making. The goal of this paper is to provide a simple hands-on numerical introduction to input-output analysis including the potential implications of data aggregation in an original manner. First, the calculation of production-based and consumption-based inventories is introduced based on a dummy 2 × 2 input-output table. Next, the inventories of the 2 × 2 input-output table are compared with the production-based and consumption-based inventories of a corresponding non-aggregated 4 × 4 input-output table. A comparison of the inventories of both dummy input-output tables allows for an exemplary demonstration of inaccurate allocation as a result of data aggregation and to conclude on potential implications for decision-making. Overall, this work offers a succinct and numerically substantiated introductory review of input-output analysis for practitioners in sustainability sciences including the potential implications of aggregation of input-output data. Its simplistic approach sets this work apart from other publications on aggregation in input-output analysis that are founded in economics or econometrics.
... However, much more recently, attention has returned to input-output modelling in a global context more generally. Tukker and Dietzenbacher (2013) describe how several multi-regional input-output (MRIO) models have been developed in the very recent literature. These are, along with WIOD which is used in the present model, EORA (Lenzen et al. 2013), EXIOPOL (Tukker, Koning, et al. 2013) and the more mature GTAP (Walmsley, Aguiar, and Narayanan 2012). ...
We present a new, flexible and extensible alternative to multi-regional input-output (MRIO) for modelling the global economy. The limited coefficient set of MRIO (technical coefficients only) is extended to include two new sets of coefficients, import ratios and import propensities. These new coefficient sets assist in the interaction of the new model with other social science models such as those of trade, migration, international security and development aid. The model uses input-output models as descriptions of the internal workings of countries’ economies, and couples these more loosely than in MRIO using trade data for commodities and services from the UN. The model is constructed using a minimal number of assumptions, seeks to be as parsimonious as possible in terms of the number of coefficients, and is based to a great extent on empirical observation. Two new metrics are introduced, measuring sectors’ economic significance and economic self-reliance per country. The Chinese vehicles sector is shown to be the world’s most significant, and self-reliance is shown to be strongly correlated with population. The new model is shown to be equivalent to an MRIO under an additional assumption, allowing existing analysis techniques to be applied.
... The assumption of proportionality does not invalidate the use of the I-O model however, since in some cases the linear proportionality gives a reasonable estimate even when non-linear relationship exits (Hendrickson et al., 1998). Tukker and Dietzenbacher (2013) also advocates for the use of the input-output framework especially when a lack of micro-level data available. ...
Enhanced weathering (EW) involves application of crushed silicate rocks on croplands to capture CO2. Although research on EW is gaining traction, the missing elements in the literature however are the supply chain sustainability impacts associated with large-scale production and deployment of crushed silicates for EW purposes. The need to conduct sustainability assessments for EW systems in addition to validated technical feasibility remains a relevant research gap. In this work, the potential economic and environmental impacts associated with production of crushed silicates is assessed for eight countries, belonging to two separate groups: emerging economies (Brazil, Russia, India, and China) and developed economies (USA, UK, France, and Germany).
A total of six economic and environmental impact categories are included in the assessment; gross domestic product (GDP), gross operating surplus (GOS), imports, greenhouse gas emissions, energy, and material use. The input-output model is used to estimate the economy-wide and macro-level sustainability impacts derived from producing crushed silicates. Findings show developed economies have relatively high levels of positive economic benefits and may experience less negative environmental impacts within their national boundaries by ‘leaking’ such impacts via imports. Imported consumption for crushed silicate production in developed countries were found to be substantially higher than that of emerging economies. For the emerging economies, imported consumption associated with crushed silicate production constitutes on average, less than 10% whereas for developed economies, imported consumption averages 20%. The UK mining and quarrying sector has the highest imported consumption at approximately 30%. The results of the study provide insightful outlook into the opportunities and challenges surrounding EW sustainability and is important in informing both national and global policy decisions regarding this technique.
... An IO table comprising more than one national IO table linked by trade data is called a multiregional input-output (MRIO) table (Owen et al. 2016;Tukker and Dietzenbacher 2013). MRIO databases document intra-and inter-industry trade within and across national borders and the final demand for domestic and foreign goods and services by households, governments, and firms Timmer et al. 2015;Yamano and Webb 2018). ...
This paper applies an environmentally extended input-output analysis, leveraging the
Eora database, to estimate the global raw material footprints of 51 African nations from 1995 to 2015. It employs the least absolute shrinkage and selection operator and panel regression models to quantify the effects of diverse variables on Africa’s raw material footprints. The findings show that the raw material footprints of Africa’s production and consumption soared by 41 percent and 38 percent, respectively, from 1995 to 2015, mainly driven by biomass and construction materials. They show that Africa outsources 25 percent of its raw material footprints from consumption, while over 60 percent of its footprints from production arise from its exports. Our findings beckon African governments to reduce the excessive focus on exploitation and concentrate on
combatting corruption and extreme rent-seeking while decoupling Africa’s raw material footprints from rising public debt, carbon emissions, income levels, and population.
... In this work, we invoke the Ghosh formulation, but not to trace the downstream fate of price shocks, taxes or subsidy injections, but instead to trace the downstream fate of marine NIS transfer risks associated with vessels carrying goods along international trade routes. These routes can be well mapped by the Leontief and Ghosh inverses derived from global MRIO databases (Murray and Lenzen, 2013;Tukker and Dietzenbacher, 2013), which in turn are supported by comprehensive international trade databases published for example by the United Nations (UNSD, 2020b). In what follows, we assume a proportionality between i) the value of 1 Households, the government, the capital sector, and stocks. ...
The vast majority of globally traded cargo is transported via maritime shipping. Whilst in port for loading and unloading, these ships can pick up local marine organisms with internal ballast water or as external biofouling assemblages and subsequently move these to destination far beyond their natural ranges. Over the past decades, this mechanism has led to the establishment of hundreds of non-indigenous species (NIS) around global coastlines. Marine NIS cause significant environmental, economic, cultural and human health impacts. Taking effective steps to preventing their dispersal and establishment is an enduring challenge for governments and conservation agencies around the world. Here we use international commodity trade data and a Nobel-Prize-winning economic analysis technique to develop a novel approach for assessing global marine NIS transfer risks. We show that by tracing the origins and destinations of seaborne trade connections, and the nature of the traded commodities, we can predict the strength of shipping vectors and associated marine biosecurity risks. We demonstrate the utility of our approach via a case-study, where we trace the spread of a hypothetical marine NIS from Japan and show the congruence of our model results with documented invasion histories from that region. Our study demonstrates that biosecurity risk can be assessed using established economic modelling frameworks on the basis of monetary transaction data alone, and without the need for detailed itineraries of the many thousand vessels making up the global commercial fleet. Novel, cost-effective tools are needed to mitigate biosecurity risks associated with maritime trade, and to meet conservation goals while enabling economic prosperity. The modelling framework presented here can be expanded to incorporate future risk factors, life-history traits of particular NIS of concern, and even adapted to simulate the dispersal of terrestrial pests or disease agents.
... Minx et al. [49] provided an overview of IOA applications for CF accounting using evidence from the UK, which made an additional contribution to this emerging field. Tukker and Dietzenbacher [53] introduced systematic research on a global multiregional inputoutput model (GMRIO) and provided a short historical context of GMRIO. Wiedmann and Lezen [56] reviewed articles focusing on environmental and social footprints of global trade based on the GMRIO model, which made scientific advances in the following four areas: new indicators, modeling impacts, spatial resolution, and collaboration. ...
Reducing the effect of mankind’s activities on the climate and improving adaptability to global warming have become urgent matters. The carbon footprint (CF), derived from the concept of ecological footprint, has been used to assess the threat of climate change in recent years. As a “top to bottom” method, input–output analysis (IOA) has become a universally applicable CF assessment tool for tracing the carbon footprint embodied in economic activities. A wide range of CF studies from the perspective of the IOA model have been presented and have made great progress. It is crucial to have a better understanding of what the relevant research focuses on in this field, yet so far a systematic synopsis of the literature is missing. The purpose of this paper is to explore the knowledge structure and frontier trends in respect of the IOA model applied to CF research using scientometric visualization analysis. The main findings of this paper are as follows. (1) Published articles show a two-stage increase in the period 2008 to 2021, and present a complex academic network of countries, authors, and institutions in this important domain. (2) The classic studies are mainly divided into three categories: literature reviews, database application introduction, and CF accounting in different scales. (3) The research hotspots and trends show that the research scales tend to be more microscopic and applications of models tend to be more detailed. In addition, supply-chain analysis and driver-factor analysis will probably become the main research directions in the future.
... Due to statistical and methodological limitations, including monetary price valuation, sector classification or aggregation, and uncertainties and absences in trade statistics, available input-output (IO) databases are limited. Besides the input-output table at the country level, several well-known and always being updated global MRIO databases are the Global Trade Analysis Project MRIO table (GTAP-MRIOT) [2], the World Input-Output Database (WIOD) [3], EXIOBASE [4], and Eora [5]. The existing literature has applied these databases extensively for various international comparisons. ...
Scholars have attempted to compile various multi-region input-output (MRIO) tables for different countries. However, due to city-level data scarcity and methodology constraints, almost no MRIO table covers a large number of cities with more disaggregated sectors in countries with large economies, such as China. Based on two large-scale firm-level datasets, the China Annual Survey of Industrial Firms (CASIF) survey and the China Customs Data (CCD) database, from 2000 to 2013, this paper uses China as a case study and presents a new compilation method to construct an MRIO table covering 284 prefecture-level administrative cities and 334 four-digit sectors, which is by far the most comprehensive MRIO table with the largest number of cities and the most segmented industries in China. Unlike existing MRIO tables constructed based on provincial single-region IO (SRIO) tables, we use information along with various linear constraints implied by sector-level and firm-level statistics. This paper expands on the direct decomposition method by developing auxiliary econometric models necessary for estimations and consistency adjustment. In addition, a comparative analysis shows the reliability of our method, which guarantees better coherence and comparability with the MRIO officially published by the National Bureau of Statistics of China (NBS). Therefore, our proposed methodology provides the possibility of producing more disaggregated MRIO tables in other similar contexts.
... No study has yet been carried to evaluate the socio-economic impacts of the fishing activities of one country onto other countries using the multi-regional input-output model. In fact, the phenomenon of globalization and the free movement of goods and services within the European Union has led to a fragmentation of the value chain within the different EU countries (Tukker and Dietzenbacher, 2013). Multi-regional models aim to quantify these economic interdependencies between countries, given the fragmentation of the value chain. ...
Fisheries, aquaculture, and seafood transformation sectors are components of the Green Deal roadmap promoting the transformation of the European Union into a resource-efficient, climate-friendly, and competitive economy. Whilst several studies have shown these sectors' socioeconomic national contributions, the method developed in this article aimed at demonstrating their importance at the European level and at showing the interlinkages that exist between countries, at the sub sectorial level. This article presents the development of a seafood European multi-regional input-output model methodology and its potentialities. The seafood sectors were disaggregated for each country from national input-output tables through a double disaggregation algorithm thanks to proxy input-output tables and STECF data, which highlighted the purchase of intermediate products at the STECF subsector level. The resulting disaggregated economic data for the seafood sectors were then linked to the multiregional turnover, gross value added, and jobs multipliers inverted from the FIGARO multiregional input-output table to obtain the indirect and induced socioeconomic impacts of the seafood sectors at the European level. The results showed economic leakages illustrated by the gross value-added multiplier. While shellfish farming, passive gear fishing, and active gear fishing, were the sectors in which the generated economic wealth remained the most in the European Union territory, a third of generated economic wealth by saltwater finfish farming and seafood transformations was captured outside the EU borders. Moreover, although France, the UK, and Spain are the main turnover contributors across sectors (except for micro and small seafood transformation companies), the impacts generated by the seafood industries greatly benefit the German economy that capture more economic wealth than it contributes across all sectors. This method provides a baseline scenario for further studies on the evaluation of socio-economic benefits of changes in practices such as circular economy emphasizing the interdependencies of supply chains at the European level.
... The former quantifies carbon emissions occurring in the regional territory where production takes place, while the latter quantifies emissions in a region where consumption occurs (Davis and Caldeira, 2010). In order to quantify "consumption-based" emissions, either top-down models, such as input-output tables, can be used, or trade data are coupled with production-based analyses (Tukker and Dietzenbacher 2013). The standard territorial-based emission accounting methods are adjusted by removing the emissions associated with exports and adding the emissions associated with imports (Peters and Hertwich 2008). ...
This study selects the electro-optical equipment manufacturing industry as an example to explore whether participation in the global value chain increases or mitigates a country’s carbon emissions and describes the impacting factors. Based on multi-regional input-output tables, a value-added decomposition model is used to decompose forward and backward value-added/final products of the world’s electro-optical equipment manufacturing industries in 65 countries from 2005 to 2015. Impacts of several global value chain participation characteristics, including position, forward participation and production length, and backward participation and production length, on a country’s carbon emissions, are examined. The results show that Asian countries have the highest participation rate in the global value chain, both forward and backward, of the electro-optical equipment sector with increasing proportions for forward participation, but lowest backward participation, in simple global value chains. An increase in forward global value chain participation contributes to the reducing carbon emission intensity of the electro-optical equipment manufacturing industry, particularly in terms of simple global value chain participation. On the other hand, the production length of the backward simple global value chain is positively correlated with the total imported carbon emission intensity, indicating that the longer the simple global value chain of foreign production is included in the industry’s imported intermediate products and the lower the country’s position in the global value chain is, the higher its imported carbon emission intensity is. Upgrade in the global value chain is able to reduce the embodied carbon emissions in the intermediate product exports and total imports.
There are global aspirations to reach net zero emissions, which triggered the development of standards, guidance and tools to measure and manage climate action across countries, sectors and companies. However, carbon accounting inaccuracies, ambiguous emissions disclosures and unambitious climate targets are hampering these aspirations. This paper reports on the disparity between high‐level guidance and practical implementation of carbon accounting and reporting at company level. By conducting a systematic literature analysis and focussing on the English Water sector, we utilise case study data from Northumbrian Water Limited (NWL), to identify limitations in the current guidance and frameworks. The results indicate the necessity for enhanced alignment in high‐level guidance, particularly regarding the Greenhouse Gas Protocol and the Science‐Based Target Initiative. It is evident that clarity and consistency from high‐level resources are essential for climate mitigation. This paper shows, depending on the sector and company types, that different benefits are gained from using the available resources. We propose a carbon measurement and management process for the English Water sector (and beyond) to reach net zero targets and make recommendations for decision makers. This helps to understand best practices of carbon accounting and reporting and to make effective investment decisions. Consequently, we advocate for policy interventions to improve the standardisation of carbon accounting models. Harmonising international regulatory frameworks and standards is needed, which will empower organisations to effectively assess, manage and reduce their carbon footprints.
Die einzigartigen Natur- und Kulturlandschaften von Schutzgebieten sind weltweit bedeutende Destinationen für Tages- und Übernachtungsgäste. Die Ausgaben von Besuchern erzeugen ökonomische Effekte und sichern so regionale Wertschöpfung und Beschäftigung. Zur Analyse dieser regionalökonomischen Effekte des Tourismus in Schutzgebieten stehen heute verschiedene Methoden zur Verfügung. International ist die Input-Output-Analyse das etablierte Standardverfahren in mehreren Monitoringsystemen. Die Schutzgebietsforschung in Deutschland hat sich hingegen auf die Wertschöpfungsanalyse spezialisiert und geht dabei von generellen Annahmen der touristischen Multiplikatorwirkung aus. Vor dem Hintergrund einer Adaption an internationale Standards wird erstmals eine Input-Output-Analyse der regionalökonomischen Effekte des Tourismus in deutschen Schutzgebieten durchgeführt. Berechnungen auf Grundlage eines Input-Output-Modells liefern für das Fallbeispiel Biosphärengebiet Schwarzwald regionale und branchenspezifsche Multiplikatoren. Die Ergebnisse werden zum einen mit einer Input-Output-Analyse des Nationalparks Schwarzwald und zum anderen mit einer klassischen Wertschöpfungsanalyse verglichen. Darüber hinaus ermöglicht die Anwendung eines multiregionalen Ansatzes die Analyse der touristischen Multiplikatorwirkung in der gesamten Naturparkregion Schwarzwald Mitte/Nord und Südschwarzwald.
O objetivo deste artigo é analisar as relações intersetoriais do comércio bilateral entre Brasil e China, em termos econômicos e ambientais, nas transações do ano de 2016. Por meio do exercício metodológico desenvolvido em Chen et al. (2021), aplicado sobre a matriz multirregional UNCTAD-EORA, foram estimados o valor adicionado e as emissões de gases efeito estufa incorporados nos fluxos de bens e serviços para 26 setores. Em geral, os resultados chamam atenção sobre a formação de uma
relação divergente entre os países, no qual o Brasil tem é caracterizado pela concentração da pauta exportadora em bens primários industriais básicos, enquanto a China demonstra uma maior diversificação produtiva e dinamização global. A análise demonstra que o volume de transações, estrutura e capacidade produtiva incidem diretamente sobre o nível de emissões setoriais, que são transferidos e distribuídos por meio dos fluxos de comércio internacional. Identificamos que o sucesso de crescimento econômico chinês tem sido acompanhado pelo aumento progressivo de emissões gases efeito estufa, que são incorporados nos bens e serviços comercializados com o Brasil, representados principalmente pelo comércio do grupo de bens de capital e industriais chineses. No caso dos fluxos de bens e serviços do Brasil com destino a China, as emissões foram mais representativas para os setores
de transporte e de commodities. Portanto considerando a forte concentração da indústria manufatureira em território chinês, a especialização brasileira no setor de commodities, a parceria estratégica dos países e os respectivos níveis de emissões, destacamos sobre a importância da consideração dos efeitos das emissões baseadas na produção e baseadas no consumo para elaboração de políticas comerciais e
industriais, com foco no enfrentamento da crise de mudanças climáticas.
Given the unstoppable forces behind regional economic integration trends, damages from a flood disaster in a specific area will influence correlative cities through industrial linkages and make economic systems more vulnerable. Assessing urban vulnerability is an essential part of flood prevention and mitigation, and also a hot topic of recent research. Therefore, this study (1) constructed a mixed multiregional input-output (mixed-MRIO) model to explore ripple effects on other regions and sectors when production in a flooded area is constrained, and (2) applied this model to characterize the economic vulnerability of cities and sectors in Hubei Province, China by simulation. First, various hypothetical flood disaster scenarios are simulated to reveal the ripple effects of different events. The composite vulnerability is assessed by analyzing economic-loss sensitivity rankings across scenarios. Then, the model is applied to the case of a 50-year return period flood that occurred in Enshi City, Hubei Province, on July 17, 2020 to empirically verify the usefulness of such a simulation-based approach in evaluating vulnerability. The results indicate vulnerability is higher in Wuhan City, Yichang City, and Xiangyang City and for three manufacturing sector types: livelihood-related manufacturing, raw materials manufacturing, and processing and assembly manufacturing. Such cities and industrial sectors with high vulnerability will significantly benefit from prioritization in flood management.
The private sector plays a crucial role in achieving the United Nations Sustainable Development Goals (SDGs). However, implementation of the SDGs into corporate strategies is low, and there are as yet no practicable methods to assess the impact of business activities on the SDGs. Therefore, this paper identifies influencing factors of industries on the official SDG indicators, and we develop a top-down method to quantify industry footprints vis-à-vis the SDGs, including the manufacturing and use phase and supply-chain effects. We apply the proposed method to case studies for 19 industries (which is the entire private sector, with the exception of services) and 28 environmental SDG indicators, covering topics such as greenhouse gas emissions, energy consumption, microplastic emissions, and land take.
First, the results show that the private sector has a high impact on the SDG indicators under analysis, with a total footprint of 66% for all industries on average. Second, large industries such as agriculture, construction, and motor vehicles usually have the highest footprints. Third, a few industries cause a major part of the footprint for each indicator, which means efficient improvements are indeed possible. Finally, every industry has some impact on any given SDG indicator, at least in a small way via the supply chain.
By quantifying footprints for the private sector, this paper demonstrates where responsibility for achieving the SDGs lies, it also supports companies in making decisions and implementing the SDGs in their strategy. In addition, this data-based assessment helps to avoid “SDG-picking”.
This chapter provides a literature overview on the use of input–output (I-O) analysis in efficiency and productivity measurements. The exposition covers both the traditional I–O modeling framework and its extension to frontier-based I–O approach that adds elements of frontier analysis into the traditional I–O framework, thus utilizing advantages of both techniques. Accounting for intermediate inputs is especially important in the current economic conditions that are characterized by increased volumes of international trade in intermediate inputs and growing environmental pressures, posing challenges to performance measurement. Therefore, the chapter also provides a discussion of empirical applications of I–O framework in international and interregional trade, environmental studies, and policy scenario analyses.JEL CodesC67D5D61O4KeywordsInput-outputProductivityEfficiencyEnvironmental analysis
The automotive sector plays a significant role in the Turkish economy in creating relatively high added value and employment and accelerating the country's global trade share. The sector is so substantial that it has become the leader in Turkish exports in the last decade. There are plenty of papers in the literature regarding the automotive sector and economic growth nexus and implementing various methods. Still, hardly any studies focus merely on the current account deficits the sector generates, incorporating an input-output analysis. This paper examines the automotive sector and current account deficit nexus through input-output analysis. The results highlight that the automotive sector is highly dependent on imports.
Environmentally Extended Input-Output Analysis (EEIOA) provides a method for assessing the relationship between economic consumption and environmental impact. EEIO is now widely used to assess environmental impacts embodied in goods and services produced and sold. In this article, environmental extensions for the generation of waste and air and water pollutants are applied based on the input-output table of Buryatia for 2016.
With the acceleration of industrialization and rapid demand growth, carbon emissions increased dramatically in China's food industry during the past two decades. However, the uncertainty of the emission level of China's food industry alongside the global supply chain restricts China from implementing more sustainable food policies. Thus, this paper first estimates the carbon footprint in China's food manufacturing industry domestically and internationally by identifying major trade partners and the corresponding industries using a multi-regional input-output model. Then, this paper further decomposed the determinants of carbon footprint change. The results show that agriculture, food industry, transport, and energy supply are primarily responsible for carbon emission growth. The structural decomposition results further demonstrate that increasing demand and consumption pattern changes are important factors leading to a growth in carbon emission, and energy efficiency improvement helps China's food industry mitigate the emission level. Finally, policy recommendations are provided based on the decomposition results.
Metals play a vital role in economic development, and resource scarcity is currently a huge global challenge. To better understand the economic drivers underlying metal resource depletion, it is critical to quantify the scarcity-weighted metal footprints from different perspectives. Previous studies have estimated the scarcity-weighted metal footprints from the extraction perspective (representing consumed resources out of the total available resources). However, the scarcity-weighted metal footprints from a reserve perspective have been overlooked, indicating that the global metal supply insecurity cannot be revealed comprehensively. This study quantified the global scarcity-weighted metal footprints for 13 kinds of metals by combining a reserve-based scarcity indicator with an environmentally-extended multi-regional input-output model. We also compared the reserve-based scarcity results with that of extraction-based scarcity and non-weighted. Results show that the reserve-side scarcity indicator brings to light the metal scarcity risks of some nations with small reserves (e.g., Mexico and Ireland). For example, Ireland ranked 69th and 55th in terms of actual extraction and extraction-side scarcity-weighted footprints, but 4th in terms of reserve-based scarcity-weighted footprints. Moreover, the scarcity-weighted footprints of some nations with large metal reserves (e.g., Brazil and Australia) are overestimated by the traditional extraction-based indicator. The reserve-based scarcity-weighted metal footprints can help nations identify metal supply risks from the viewpoint of their natural resource endowment. The findings can provide new insights for policymakers around the world when assessing metal resource sustainability to achieve effective resource management.
ในปัจจุบัน ประเทศเวียดนามถูกจับตามองเป็นอย่างมากสำหรับการเติบโตทางเศรษฐกิจและการพัฒนาอุตสาหกรรม ซึ่งคณะผู้วิจัยได้เล็งเห็นความน่าสนใจในประเด็นนี้ และได้ทำการศึกษาโดยมีวัตถุประสงค์เพื่อวิเคราะห์รายละเอียดโครงสร้างของระบบเศรษฐกิจ และเพื่อระบุอุตสาหกรรมที่มีการเติบโตและมีศักยภาพสูงในประเทศเวียดนาม โดยงานวิจัยนี้ใช้ข้อมูลตารางปัจจัยการผลิตและผลผลิต (Input-Output Table) ที่จัดสร้างโดย OECD ซึ่งการวิเคราะห์ประกอบด้วย 3 ส่วน ดังนี้ต่อไป
ส่วนแรก ทำการพิจารณาด้วย Network Analysis โดยการใช้โปรแกรม Gephi ซึ่งสร้างผลลัพธ์เป็นภาพแผนผัง และค่าดัชนีแสดงความเชื่อมโยงระหว่างภาคส่วนในระบบเศรษฐกิจจากข้อมูลในตารางปัจจัยการผลิตและผลผลิต (Input-Output Table) โดยผลที่ได้ แสดงให้เห็นว่าโครงสร้างอุตสาหกรรมของเวียดนามเปลี่ยนแปลงไปอย่างมากจากปี ค.ศ. 1996 ถึง ค.ศ. 2018 โดยพบว่า อุตสาหกรรมหนัก เช่น ปิโตรเลียม, อุตสาหกรรมเคมี, อุตสาหกรรมเหล็กต้นน้ำ รวมถึงภาคการค้าปลีก-ค้าส่ง ได้กลายเป็นอุตสาหกรรมหลักที่สำคัญต่อเศรษฐกิจเวียดนามแทนอุตสาหกรรมเบา เช่น กระดาษ, แร่อโลหะ และอุตสาหกรรมการผลิตทั่วไป
ส่วนที่สอง เมื่อพิจารณากลุ่มอุตสาหกรรมที่กลายเป็นอุตสาหกรรมหลักที่สำคัญต่อเศรษฐกิจเวียดนามในปี ค.ศ. 2018 ร่วมกับค่า Backward และ Forward Multiplier ก็ยังพบว่ากลุ่มดังกล่าว เป็นสาขาการผลิตที่มีค่า Backward และ Forward Multiplier ที่เพิ่มขึ้นสูงสุดด้วย ถึงแม้ว่าอุตสาหกรรมเหล่านี้จะไม่ใช่อุตสาหกรรมส่งออกหลักของประเทศเวียดนาม แต่ผลลัพธ์จากการวิเคราะห์ด้วยทั้ง 2 วิธีการ ได้ชี้ให้เห็นชัดเจนถึงการเป็นสาขาอุตสาหกรรมพื้นฐานที่ผลิตสินค้าต้นน้ำและเป็นโครงสร้างหลักของประเทศ นอกจากนี้ ผลการวิเคราะห์ยังชี้ให้เห็นว่า อุตสาหกรรมอื่นๆ ของเวียดนามมีค่า Backward Multiplier สูงขึ้นโดยส่วนใหญ่ (ในขณะที่ Forward Multiplier เปลี่ยนแปลงเล็กน้อย) ซึ่งแสดงให้เห็นถึงความสามารถในเลื่อนตัวเองมาเป็นผู้ผลิตสินค้าปลายน้ำหรือผู้ส่งออกสินค้าอุตสาหกรรมได้มากขึ้น เช่น อุตสาหกรรมเหล็กแปรรูป, คอมพิวเตอร์ และอิเล็กทรอนิกส์ เป็นต้น
การวิเคราะห์ในส่วนที่สาม ได้ศึกษาสัดส่วนของวัตถุดิบขั้นกลางต่อต้นทุนการผลิตของอุตสาหกรรมในเวียดนาม โดยผลลัพธ์สอดคล้องกับส่วนที่สอง ซึ่งแสดงให้เห็นว่าอุตสาหกรรมส่วนใหญ่ (โดยเฉพาะอุตสาหกรรมส่งออก) มีสัดส่วนดังกล่าวสูงขึ้น แสดงถึงการขยายห่วงโซ่อุปทานของชิ้นส่วนภายในประเทศและเครือข่ายความเชื่อมโยงระหว่างสาขาอุตสาหกรรมปลายน้ำไปยังต้นน้ำที่มีความซับซ้อนมากขึ้น
ผลจากการวิเคราะห์ จะเป็นประโยชน์ในการเข้าใจโครงสร้างและปัจจัยหลักของการเติบโตของเศรษฐกิจเวียดนาม ซึ่งรัฐบาลเวียดนามสามารถนำไปใช้ในการกำหนดนโยบายการค้าและนโยบายภาษีที่สอดคล้องกับอุตสาหกรรมแต่ละกลุ่ม และยังเป็นประโยชน์ต่อภาคเอกชนไทยในการเลือกกลุ่มเป้าหมายเพื่อการขยายการลงทุนในประเทศเวียดนาม รวมถึงภาครัฐบาลของไทยในการติดตามภาวะเศรษฐกิจในภูมิภาค CLMV ต่อไป
Disasters resulting from climate change and extreme weather events adversely impact crop and livestock production. While the direct impacts of these events on productivity are generally well known, the indirect supply-chain repercussions (spillovers) are still unclear. Here, applying an integrated modelling framework that considers economic and physical factors, we estimate spillovers in terms of social impacts (for example, loss of job and income) and health impacts (for example, nutrient availability and diet quality) resulting from disruptions in food supply chains, which cascade across regions and sectors. Our results demonstrate that post-disaster impacts are wide-ranging and diverse owing to the interconnected nature of supply chains. We find that fruit, vegetable and livestock sectors are the most affected, with effects flowing on to other non-food production sectors such as transport services. The ability to cope with disasters is determined by socio-demographic characteristics, with communities in rural areas being most affected. The complex nature of food supply chains makes it a crucial exercise to estimate the impacts of disruptions caused by climate disasters. By applying an integrated modelling framework to Australia and considering heatwaves, cyclones and other climate events, this study presents novel ways of quantifying regional and sectoral spillover effects—including job and income losses, food and nutrient availability, and diet quality.
The water–energy–food (WEF) nexus is shown to be a highly interconnected, complex system, operating over multiple time scales, and at spatial scales from household to global. The key WEF nexus foci issues and challenges are known to be extremely diverse and change depending on the local situation and setting, the scale at which the nexus is analyzed, and even according to the sector used as the nexus entry point. As such, there are a multitude of approaches and methodologies for studying, assessing, and analyzing the nexus, which can be adopted to suit the specific case under investigation. There is no “silver bullet” modeling or methodological approach to studying the nexus. Some common and regularly employed nexus investigation approaches are outlined in this chapter, ranging from purely qualitative conceptual systems mapping aiming at getting a high-level understanding of nexus connections for a given study area, through to quantitative approaches including system dynamics modeling, agent-based modeling, life cycle assessment, and (multiregion) input–output modeling. Each approach has strengths and limitations, explored here, and the selected tool should address the research questions being considered as well as the goals of the study. In addition to tools and models, results need to be translated into “real-world” practicalities to have a better chance of being taken up and adopted. To this end, this chapter also introduces some indices and metrics that are often applied to communicate nexus results and messages to policymakers in a nontechnical language. This effort hopes to better disseminate and communicate the idea of integrated nexus thinking, especially in a policy- and decision-making domain.
Environmentally extended input-output analysis (EE-IO) is one of
the fastest growing fields in input-output analysis. This paper provides an
overview 360 EE-IO articles that have appeared in peer-reviewed journals
from 1969-2009. The paper shows that the field of EE-IO has experienced
rapid growth since the mid-1990s. Last year (2009) was the most productive
year to date, with 50 articles appearing in scientific journals.
The articles have been categorized in terms of the type of publication
(empirical application or other), IO methods, environmental problems,
country, authors, affiliations and journals. The 20 most cited papers
(published after 1996) are also provided.
Based on this overview a number of tentative conclusions are drawn about the
past 4 decades and possible future developments of the field of EE-IO..
Our database of EE-IO articles is not (yet) complete. For the period 1995-
2009 I am assuming that I have been able to obtain about 75-85% of all
published articles. However for the period before 1995 the coverage is
probably only about 40-50%. Note also that, due to time constraints, I have
used a narrow definition of EE-IO which includes only articles that
investigate environmental pressures. As a result IO papers that investigate the
economic ramifications of environmental issues or papers on environmental
accounting are not included. In future versions of this paper I hope to expand
and complete the overview.
There are a number of initiatives aimed at compiling large-scale global multi-region input–output (MRIO) tables complemented with non-monetary information such as on resource flows and environmental burdens. Depending on purpose or application, MRIO construction and usage has been hampered by a lack of geographical and sectoral detail; at the time of writing, the most advanced initiatives opt for a breakdown into at most 129 regions and 120 sectors. Not all existing global MRIO frameworks feature continuous time series, margins and tax sheets, and information on reliability and uncertainty. Despite these potential limitations, constructing a large MRIO requires significant manual labour and many years of time. This paper describes the results from a project aimed at creating an MRIO account that represents all countries at a detailed sectoral level, allows continuous updating, provides information on data reliability, contains table sheets expressed in basic prices as well as all margins and taxes, and contains a historical time series. We achieve these goals through a high level of procedural standardisation, automation, and data organisation.
EXIOPOL (A New Environmental Accounting Framework Using Externality Data and Input–Output Tools for Policy Analysis) was a European Union (EU)-funded project creating a detailed, global, multiregional environmentally extended Supply and Use table (MR EE SUT) of 43 countries, 129 sectors, 80 resources, and 40 emissions. We sourced primary SUT and input–output tables from Eurostat and non-EU statistical offices. We harmonized and detailed them using auxiliary national accounts data and co-efficient matrices. Imports were allocated to countries of exports using United Nations Commodity Trade Statistics Database trade shares. Optimization procedures removed imbalances in these detailing and trade linking steps. Environmental extensions were added from various sources. We calculated the EU footprint of final consumption with resulting MR EE SUT. EU policies focus mainly on energy and carbon footprints. We show that the EU land, water, and material footprint abroad is much more relevant, and should be prioritized in the EU's environmental product and trade policies.
International input–output (IO) tables are among the most useful tools for economic analysis. Since these tables provide detailed information about international production networks, they have recently attracted considerable attention in research on spatial economics, global value chains, and issues relating to trade in value added. The Institute of Developing Economies at the Japan External Trade Organization (IDE-JETRO) has more than 40 years of experience in the construction and analysis of international IO tables. This paper explains the development of IDE-JETRO's multi-regional IO projects including the construction of the Asian International Input–Output table and the Transnational Interregional Input–Output table between China and Japan. To help users understand the features of the tables, this paper also gives examples of their application.
In the last couple of decades, production processes have been characterized by their fragmentation,
which crosses the borders of countries more and more. This coincides with the common viewpoint that
products and services are now made in global value chains and that ‘trade in value added’ might be a
better approach for the measurement for international trade. The same applies at the regional level, and
perhaps even to a larger extent. The present paper analyzes the role of Brazilian states in the global
value chain. Since fragmentation of production processes leads to an interdependent structure which
has to be accounted for, the input-output methodology seems especially suitable. Therefore, in its
empirical application, the paper combines a world input-output table covering 40 countries (and the rest
of the world as a 41st country) with an inter-regional input-output table covering each of the Brazilian
states, for the year 2008. Our results show that the average country trades approximately twice as much
in value added (as a share of country’s value added) than Brazil: the participation of Brazil in the global
value chain is somewhat limited. We notice, however, important differences among states, both in terms
of trade volume and of relevant industries that account for the generation of value added. The paper also
further analyzes the Brazilian value chain and the trade relations of Brazilian states with China and USA,
exploring the regional heterogeneities involving such relations.
In a globalised world, the transfer of carbon between regions, either
physically or embodied in production, represents a substantial fraction
of global carbon emissions. The resulting emission transfers are
important for balancing regional carbon budgets and for understanding
the drivers of emissions. In this paper we synthesise current
understanding in two parts: (1) CO2 emissions embodied in
goods and services that are produced in one country but consumed in
others, and (2) carbon physically present in fossil fuels,
petroleum-derived products, harvested wood products, crops, and
livestock products. We describe the key differences between studies and
provide a consistent set of estimates using the same definitions,
modelling framework, and consistent data. We find the largest trade
flows of carbon in international trade in 2004 were fossil fuels (2673
MtC, 37 % of global emissions), CO2 embodied in traded goods
and services (1661 MtC, 22 % of global emissions), crops (522 MtC, 31 %
of total harvested crop carbon), petroleum-based products (183 MtC, 50 %
of their total production), harvested wood products (149 MtC, 40 % of
total roundwood extraction), and livestock products (28 MtC, 22 % of
total livestock carbon). We find that for embodied CO2
emissions, estimates from independent studies are robust, and that
differences between individual studies are not a reflection of the
uncertainty in consumption-based estimates, but rather these differences
result from the use of different production-based emissions input data
and different definitions for allocating emissions to international
trade. After adjusting for these issues, results across independent
studies converge to give less uncertainty than previously assumed. For
physical carbon flows there are relatively few studies to be
synthesised, but differences between existing studies are due to the
method of allocating to international trade, with some studies using
"apparent consumption" as opposed to "final consumption". While results
across studies are sufficiently robust to be used in further
applications, more research is needed to understand differences and to
harmonise definitions for particular applications.
In a globalised world, the transfer of carbon between regions, either
physically or embodied in production, represents a substantial fraction
of global carbon emissions. The resulting emission transfers are
important for balancing regional carbon budgets and for understanding
the drivers of regional emissions. In this paper we synthesise current
understanding in two parts: (1) embodied CO2 emissions from
the production of goods and services produced in one country but
consumed in others, (2) physical carbon flows in fossil fuels,
petroleum-derived products, harvested wood products, crops, and
livestock. We describe the key differences between studies and provide a
consistent set of estimates using the same definitions, modelling
framework, and consistent data. We find the largest trade flows of
carbon in international trade in 2004 were fossil fuels (2673 MtC, 37%
of global emissions), CO2 embodied in traded goods and
services (1661 MtC, 22% of global emissions), livestock (651 MtC, 20% of
total livestock carbon), crops (522 MtC, 31% of total harvested crop
carbon), petroleum-based products (183 MtC, 50% of their total
production), and harvested wood products (149 MtC, 40% of total
roundwood extraction). We find that for embodied CO2
emissions estimates from independent studies are robust. We found that
differences between individual studies is not representative of the
uncertainty in consumption-based estimates as different studies use
different production-based emission estimates as input and different
definitions of allocating emissions to international trade. After
adjusting for these issues, results across independent studies converge
to give less uncertainty than previously assumed. For physical carbon
flows there are relatively few studies to be synthesised, but
differences between existing studies are due to the method of allocating
to international trade with some studies using "apparent consumption" as
opposed to "final consumption" in more comprehensive approaches. While
results across studies are robust to be used in further applications,
more research is needed to understand the differences between methods
and to harmonise definitions for particular applications.
Two national greenhouse gas (GHG) inventories were prepared for Estonia: (1) an inventory that includes GHG emissions from the production of goods and services (i.e., commodities) within its national territory and (2) an inventory of GHG emissions occurring within and outside its national boundaries due to Estonia's consumption of commodities, whether produced domestically or traded bilaterally. The inventories included estimates of energy-related and non-energy-related carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O) emissions (converted to CO2-equivalent, CO2eq) associated with the production and consumption of commodities, grouped in three main sectors: energy, industrial processes and agriculture. Input–output (IO) analysis, emissions embodied in bilateral trade (EEBT) approaches and the basic methods of the 2006 IPCC Guidelines were used to perform the estimates. The results of the study illustrated that the total CO2eq emissions associated with consumption in Estonia in 2005 were 18% higher than those associated with production, primarily due to the net import of CO2eq emissions from countries outside of the European Union.
An input–output framework is adopted to estimate China's carbon dioxide (CO2) emissions as generated by its exports in 2002. More than one half of China's exports are related to international production fragmentation. These processing exports generate relatively little value added but also relatively little emissions. We argue that existing estimates of the CO2 content of China's exports are significantly biased because production fragmentation has not been taken into account appropriately. Using a unique tripartite input–output table, we are able to distinguish processing exports from normal exports. Our results show that China's emissions as embodied in its exports are overestimated by more than 60% if the distinction between processing exports and normal exports is not made. Another finding is that each Yuan of value added generated by processing exports leads to 34% less CO2 emissions than a Yuan of value added generated by normal exports.
This paper provides both a conceptual framework for decomposing a country’s gross exports into value-added components by source and a new bilateral database on value-added trade. Our parsimonious framework integrates all previous measures of vertical specialization and value-added trade in the literature. To illustrate the potential of the decomposition, we present a number of applications including re-computing revealed comparative advantages and constructing an index to describe whether a country-sector is likely in the upstream or downstream of global production chains.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.
This article describes a method for determining the environmental load of Dutch private consumption. The method generates detailed information about consumption‐related environmental impacts. The environmental load of households (direct) and production (indirect) was determined for 360 expenditure categories reported in the Dutch Expenditure Survey. The indirect environmental load was calculated with linked input‐output tables covering worldwide production and trade. The environmental load per Euro turnover of industries was linked to consumer expenditures. With this method we can quantify several types of environmental load per expenditure category and per economic production region.
It was found that food production, room heating, and car use are the most important elements in the environmental load of Dutch private consumption. The impacts taking place abroad were—with the exception of emission of greenhouse gases and road traffic noise—found to be larger than domestic impacts. Most land use was found to take place in developing (non‐OECD) countries, whereas most emissions occur in industrialized (OECD) countries.
Food consumption causes, together with mobility, shelter and the use of electrical products, most life cycle impacts of consumption. Meat and dairy are among the highest contributors to environmental impacts from food consumption. A healthier diet might have less environmental impacts. Using the E3IOT environmentally extended input output database developed in an EU study on Environmental Impacts of Products (EIPRO), this paper estimates the difference in impacts between the European status quo and three simulated diet baskets, i.e. a pattern according to universal dietary recommendations, the same pattern with reduced meat consumption, and a 'Mediterranean' pattern with reduced meat consumption. Production technologies, protein and energy intake were kept constant. Though this implies just moderate dietary shifts, impact reductions of up to 8% were possible in reduced meat scenarios. The slightly changed food costs do not lead to significant first order rebound effects. Second order rebounds were estimated by applying the CAPRI partial equilibrium model. This analysis showed that European meat production sector will most likely respond by higher exports to compensate for losses on the domestic meat market. Higher impact reductions probably would need more drastic diet changes.
Human activities are causing Earth's sixth major extinction event-an accelerating decline of the world's stocks of biological diversity at rates 100 to 1,000 times pre-human levels. Historically, low-impact intrusion into species habitats arose from local demands for food, fuel and living space. However, in today's increasingly globalized economy, international trade chains accelerate habitat degradation far removed from the place of consumption. Although adverse effects of economic prosperity and economic inequality have been confirmed, the importance of international trade as a driver of threats to species is poorly understood. Here we show that a significant number of species are threatened as a result of international trade along complex routes, and that, in particular, consumers in developed countries cause threats to species through their demand of commodities that are ultimately produced in developing countries. We linked 25,000 Animalia species threat records from the International Union for Conservation of Nature Red List to more than 15,000 commodities produced in 187 countries and evaluated more than 5 billion supply chains in terms of their biodiversity impacts. Excluding invasive species, we found that 30% of global species threats are due to international trade. In many developed countries, the consumption of imported coffee, tea, sugar, textiles, fish and other manufactured items causes a biodiversity footprint that is larger abroad than at home. Our results emphasize the importance of examining biodiversity loss as a global systemic phenomenon, instead of looking at the degrading or polluting producers in isolation. We anticipate that our findings will facilitate better regulation, sustainable supply-chain certification and consumer product labelling.
We combine input-output and bilateral trade data to compute the value added content of bilateral trade. The ratio of value added to gross exports (VAX ratio) is a measure of the intensity of production sharing. Across countries, export composition drives VAX ratios, with exporters of Manufactures having lower ratios. Across sectors, the VAX ratio for Manufactures is low relative to Services, primarily because Services are used as an intermediate to produce manufacturing exports. Across bilateral partners, VAX ratios vary widely and contain information on both bilateral and triangular production chains. We document specifically that bilateral production linkages, not variation in the composition of exports, drive variation in bilateral VAX ratios. Finally, bilateral imbalances measured in value added differ from gross trade imbalances. Most prominently, the U.S.-China imbalance in 2004 is 30-40% smaller when measured in value added.
This article describes the construction of the World Input–Output Tables (WIOTs) that constitute the core of the World Input–Output Database. WIOTs are available for the period 1995–2009 and give the values of transactions among 35 industries in 40 countries plus the ‘Rest of the World’ and from these industries to households, governments and users of capital goods in the same set of countries. The article describes how information from the National Accounts, Supply and Use Tables and International Trade Statistics have been harmonized, reconciled and used for estimation procedures to arrive at a consistent time series of WIOTs.
Understanding the drivers of many environmental problems requires enumerating the global supply chain. Multi-region input–output analysis (MRIOA) is a well-established technique for this purpose, but constructing a multi-region input–output table (MRIOT) can be a formidable challenge. We constructed a large MRIOT using the Global Trade Analysis Project (GTAP) database of harmonised economic, IO, and trade data. We discuss the historical development of the GTAP-MRIO and describe its efficient construction. We provide updated carbon footprint estimates and analyse several issues relevant for MRIO construction and applications. We demonstrate that differences in environmental satellite accounts may be more important than differences in MRIOTs when calculating national carbon footprints. The GTAP-MRIO is a robust global MRIOT and, given its easy availability and implementation, it should allow the widespread application of global MRIOA by a variety of users.
The impressive development in global multi-region input–output (IO) databases is accompanied by an increase in applications published in the scientific literature. However, it is not obvious whether the insights gained from these studies have indeed been used in political decision-making. We ask whether and to what extent there is policy uptake of results from environmentally extended multi-region IO (EE-MRIO) models and how it may be improved. We identify unique characteristics of such models not inherent to other approaches. We then present evidence from the UK showing that a policy process around consumption-based accounting for greenhouse gas emissions and resource use has evolved that is based on results from EE-MRIO modelling. This suggests that specific, policy-relevant information that would be impossible to obtain otherwise can be generated with the help of EE-MRIO models. Our analysis is limited to environmental applications of global MRIO models and to government policies in the UK.
For many questions, it is crucial to know the extent of domestic value added (DVA) in a country's exports, but the computation is more complicated when processing trade is pervasive. We propose a method for computing domestic and foreign contents that allows for processing trade. By applying our framework to Chinese data, we estimate that the share of domestic content in its manufactured exports was about 50% before China's WTO membership, and has risen to nearly 60% since then. There are also interesting variations across sectors. Those sectors that are likely labeled as relatively sophisticated such as electronic devices have particularly low domestic content (about 30% or less).
Environmental multi-regional input–output (MRIO) models require large amounts of data that all have their specific uncertainties. This paper presents a sensitivity and uncertainty analysis in order to gain an understanding of the directions in which efforts should be made to reduce these uncertainties. The analyses were carried out for an MRIO model to calculate the Dutch carbon footprint. A sensitivity analysis of the technical coefficients showed that changes in the coefficients in the domestic blocks and in the Dutch import blocks had the largest effects on the calculated footprint. The uncertainty analysis consisting of a Monte Carlo simulation based on probability distributions around the model coefficients showed a relatively low degree of uncertainty in the total Dutch carbon footprint; uncertainties in the carbon emissions allocated to regions, sectors and products were larger. Both analyses showed that, in certain cases, it is justified to apply a partial MRIO analysis.
Energy-related CO2 emissions embodied in international trade have been widely studied by researchers using the environmental input–output framework. Despite the increasing interest in using the multi-regional input–output (MRIO) model by researchers, few studies have looked into the mechanism of feedback effects. We introduce a method called the stepwise distribution of emissions embodied in trade (SWD-EET) to reveal how the emissions embodied in trade are absorbed by a country's final demands through a series of allocation steps. A country's indirect absorption patterns and its indirect trade balance of emissions from bilateral trade with other countries are also studied based on the proposed method. An empirical study using the data of Asian economies shows significant differences in the “consumption-based” emission estimates for some economies due to feedback effects through international trade. The differences can be largely captured by the first step or the first two steps of the adjustment procedure in the SWD-EET analysis. Other findings and some recommendations are also presented.
The author considers the implications for current assumptions about scientific knowledge and environmental policy raised by the preventive approach and the associated Precautionary Principle. He offers a critical examination of approaches to characterizing different kinds of uncertainty in policy knowledge, especially in relation to decision making upstream from environmental effects. Via the key dimension of unrecognized indeterminacy in scientific knowledge, the author argues that shifting the normative principles applied to policy use of science is not merely an external shift in relation to the same body of 'natural' knowledge, but also involves the possible reshaping of the 'natural' knowledge itself.
Environmentally extended input output (EE IO) analysis is increasingly used to assess the environmental impacts of the final consumption expenditure in a country. Official statistics give however such EE IO data sets at best for a single country or region, as is the case for Europe. This gives a problem for assessing the impacts related to imports. Practitioners often use the so-called 'domestic technology assumption (DTA)' that assumes imported products are made in a similar economy as domestically made products. Improved approaches use for example Life Cycle Inventory data for imports, develop Multi-regional EE IO tables, etc. All these approaches have as drawback that they rely partially or totally on research data and modelling assumptions making such approaches difficult to implement for statistical offices. We considered that for large economies like the EU27 the DTA can lead to errors for three main reasons: exporting countries can have higher impacts intensities; may use more or different intermediate inputs for the same output; or sell the imported products for lower/other prices as those domestically produced. The last factor is most relevant for sustainable consumption policies of importing countries, where the first factors must be solved by making production in exporting countries more eco-efficient. We propose a simple correction for price differences in imports and domestic production using monetary and physical data present in official import- and export statistics. We compare this partial correction of the DTA with other studies.
Production and consumption activities in industrialized countries are increasingly dependent on material and energy resources from other world regions and imply significant economic and environmental consequences in other regions around the world. The substitution of domestic material extraction and processing through imports is also shifting environmental burden abroad and thus extends the responsibility for environmental impacts as well as social consequences from the national to the global level. Based on the results of the Global Resource Accounting Model, this paper presents the first trade balances and consumption indicators for embodied materials in a time series from 1995 to 2005. The model includes 53 countries and two world regions. It is based on the 2009 edition of the input–output tables and bilateral trade data published by the Organisation for Economic Co-operation and Development (OECD) and is extended by physical data on global material extraction. The results quantify the global shift of embodied material resources from developing and emerging countries to the industrialized world. In addition to the level of industrialization and wealth, population density is identified as an important factor for the formation of physical trade patterns. Exports of embodied materials of less densely populated countries tend to surpass their imports, and vice versa. We also provide a quantitative comparison between conventionally applied indicators on material consumption based on direct material flows and indicators including embodied material flows. We show that the difference between those two indicators can be as much as 200%, calling for an adjustment of conventional national material flow indicators. Multi-regional input–output models prove to be a useful methodological approach to derive globally consistent and comprehensive data on material embodiments of trade and consumption.
Production in emerging economies, such as Brazil, Russia, India, China, South Africa, and Argentina (BRICSA), increased substantially over the past two decades. This is, on the one hand, due to growing domestic demand within these countries, and, on the other hand, due to a deepened international division of work. Global trade linkages have become denser and production chains are no longer restricted to only one or two countries. The volume of international trade in intermediate inputs as well as final consumption goods has tripled in the past two decades. With this, carbon dioxide (CO) emissions and materials embodied in traded goods have increased, making it increasingly difficult to identify the actual causes of emissions and material extractions, as producing and extracting countries are not necessarily consuming the resulting goods. Using the multiregional input‐output Global Resource Accounting Model (GRAM), this article shows how global carbon emissions and materials requirements are allocated from producing/extracting countries to consuming countries. It thereby contributes to the rapidly growing body of literature on environmental factors embodied in international trade by bringing two key environmental categories — CO emissions and materials — into one consistent and global framework of analysis for the first time. The results show that part of the increase in carbon emissions and materials extraction in BRICSA is caused by increasing amounts of trade with countries in the Organisation for Economic Co‐operation and Development as well as a growing demand for goods and services produced within BRICSA.
Cross-border production chains tend to include geographically proximate countries. This suggests that increases in fragmentation should be largest among nearby trading partners, and thus may serve to localize gross trade. Using data on gross and value added trade from 1970-2009, we present three results supporting this conjecture. First, value added to export ratios are lower and falling more rapidly within geographic regions than between them. Second, gross trade travels shorter distances from source to destination than value added trade, and this gap is growing over time. Third, bilateral value added to export ratios have fallen most among nearby trading partners.
The Global Resource Accounting Model (GRAM) is an environmentally-extended multi-regional input–output model, covering 48 sectors in 53 countries and two regions. Next to CO2 emissions, GRAM also includes different resource categories. Using GRAM, we are able to estimate the amount of carbon emissions embodied in international trade for each year between 1995 and 2005. These results include all origins and destinations of emissions, so that emissions can be allocated to countries consuming the products that embody these emissions. Net-CO2 imports of OECD countries increased by 80% between 1995 and 2005. These findings become particularly relevant, as the externalisation of environmental burden through international trade might be an effective strategy for industrialised countries to maintain high environmental quality within their own borders, while externalising the negative environmental consequences of their consumption processes to other parts of the world. This paper focuses on the methodological aspects and data requirements of the model, and shows results for selected countries and aggregated regions.
Short courses, books, and articles exhort administrators to make decisions more methodically, but there has been little analysis of the decision-making process now used by public administrators. The usual process is investigated here-and generally defended against proposals for more "scientific" methods. Decisions of individual administrators, of course, must be integrated with decisions of others to form the mosaic of public policy. This integration of individual decisions has become the major concern of organization theory, and the way individuals make decisions necessarily affects the way those decisions are best meshed with others'. In addition, decision-making method relates to allocation of decision-making responsibility-who should make what decision. More "scientific" decision-making also is discussed in this issue: "Tools for Decision-Making in Resources Planning."
This article quantifies and ranks the environmental pressure caused by different product groups consumed in Sweden. This is done using information from economic and environmental statistics. An analysis for the year 1998 is performed for approximately 50 product groups using input-output analysis. This type of analysis has some major advantages for integrated product policy (IPP) purposes: the underlying data are regularly updated, the data systems are being harmonized by international standards, and the connection between environmental goals and IPP goals can be investigated. This article summarizes two Swedish reports, one for the Producer Responsibility Committee and one for the Swedish Environmental Protection Agency. The results show that the volume of consumption is an important factor in environmental pressure from products as well as impact intensities. The most important product categories for private consumption are petroleum products, electricity, construction, and food and beverages, as well as transport. Possibilities of building indicators for IPP are also discussed.
We have developed a new series of environmentally extended multi-region input-output (MRIO) tables with applications in carbon, water, and ecological footprinting, and Life-Cycle Assessment, as well as trend and key driver analyses. Such applications have recently been at the forefront of global policy debates, such as about assigning responsibility for emissions embodied in internationally traded products. The new time series was constructed using advanced parallelized supercomputing resources, and significantly advances the previous state of art because of four innovations. First, it is available as a continuous 20-year time series of MRIO tables. Second, it distinguishes 187 individual countries comprising more than 15,000 industry sectors, and hence offers unsurpassed detail. Third, it provides information just 1-3 years delayed therefore significantly improving timeliness. Fourth, it presents MRIO elements with accompanying standard deviations in order to allow users to understand the reliability of data. These advances will lead to material improvements in the capability of applications that rely on input-output tables. The timeliness of information means that analyses are more relevant to current policy questions. The continuity of the time series enables the robust identification of key trends and drivers of global environmental change. The high country and sector detail drastically improves the resolution of Life-Cycle Assessments. Finally, the availability of information on uncertainty allows policy-makers to quantitatively judge the level of confidence that can be placed in the results of analyses.
This paper revisits Trefler and Zhu's (2005, 2010) (TZ) empirical examination of the factor content of trade in the presence of international differences in production techniques and trade in inputs. In this framework, knowing the bilateral details of each country's input-output structure is key to the correct calculation of the factor content of trade. Because input-output tables typically lack this detail, TZ impute the relevant input-output coefficients by making a proportionality assumption. This paper uses survey-based input-output coefficients from the Asian Input-Output (AIO) tables that do provide bilateral details. Exploiting methodological differences in the compilation of the AIO tables and the data underlying TZ studies, this paper empirically assesses how well the TZ approach fits sourcing patterns of inputs and finds that it understates countries' use and relative use of foreign inputs, especially in those sectors where they are most used. As a result countries' use of domestic factors is overstated. Biases generated on exported and imported factor services cancel each other out. The net effect on the measured factor trade is small.
This paper presents a new conceptual framework to measure sources of value-added trade by country in global production networks. With a parsimonious decomposition of gross exports that eliminates "double counting", it integrates all previous measures of vertical specialization and value-added trade in the literature. We apply the framework to the most recent appropriate data (2004). Among emerging markets, East Asian countries are the most globally integrated. Among major developed economies, the US is the most integrated in some aspects, and Japan in others. These regional differences also affect exporters’ trade costs.
The use of Multi-Regional Input-Output Analysis (MRIOA) for understanding global environmental problems is growing rapidly. Renewed interest in MRIOA has led to several large research projects focused on constructing detailed and accurate MRIOTs. However, very few researchers have made use of the already available and regularly updated database produced by the Global Trade Analysis Project (GTAP). We demonstrate and discuss how the GTAP database can be converted into an MRIOT without the need for additional balancing. An illustrative example uses the GTAP-MRIO to reallocate carbon dioxide emissions from producing to consuming countries. We suggest that an MRIOT that treats international transport exogenously is adequate until more reliable data on international transport margins and emissions are available. To focus resources and refine methods, a concerted research effort is needed to compare the results of the GTAP-MRIO model with the new MRIO datasets under development.
Analysts carrying out input-output analyses of environmental issues are often plagued by environmental and input-output data existing in different classifications, with environmentally sensitive sectors sometimes being aggregated in the economic input-output database. In principle there are two alternatives for dealing with such misalignment: either environmental data have to be aggregated into the input-output classification, which entails an undesirable loss of information, or input-output data have to be disaggregated based on fragmentary information. In this article, I show that disaggregation of input-output data, even if based on few real data points, is superior to aggregating environmental data in determining input-output multipliers. This is especially true if the disaggregated sectors are heterogeneous with respect to their economic and environmental characteristics. The results of this work may help analysts in understanding that disaggregation based on even a small amount of proxy information can improve the accuracy of input-output multipliers significantly. Perhaps, these results will also provide encouragement for preferring model disaggregation to aggregation in future work.