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Global Multiregional Input–Output Frameworks: An Introduction and Outlook

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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.

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... Unlike bidirectional IO models, MRIO models are based on multi-directional trade data (Lenzen et al., 2004;Tukker et al., 2009 Owen, 2017). As a result, MRIO analysis averts the possibility of doublecounting consumption (Su and Ang, 2011;Tukker and Dietzenbacher, 2013; Barrett, 2013). ...
... Following regional or global principles for assigning direct environmental impacts to their corresponding source industries (or commodities) and regions (UN, 2012), recent global studies have constructed EE MRIO databases by appending environmental satellite accounts to MRIO tables Peters et al., 2011a;Tukker et al., 2013). EE MRIO analysis provides a more suitable and intuitive way of reallocating direct environmental impacts from production to intermediate and final consumption while accounting for global differences in production technologies and environmental load intensities. ...
... EXIOBASE database is an EE-MRIO model that is a result of successive European research projects (i.e. EXIOPOL, CREEA and DESIRE) that were targeted at developing a comprehensive EE MRIO database for quantitative environmental sustainability assessments Tukker et al., 2013;. ...
Thesis
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The demand for meat and dairy products is expected to double by 2050 due to population growth and changing consumption patterns worldwide. According to the IPCC, meeting the target of keeping the global temperature rise below 2°C by the middle of the century calls for massive emission cuts in greenhouse gas (GHG) emissions and natural resource use consumption associated with the global food system. In recent times, globalization and increased trade of food products have resulted in the displacement of environmental impacts related to local food consumption to regions overseas. Therefore, global mitigation options for agri-food climate- and resource use pressures requires that countries monitor and lower the environmental pressures from food consumption within and beyond their local borders. The current Danish environmental policy lays down ambitious targets to mitigate the territorial environmental impacts of Denmark’s agri-food industry, with GHG emissions, water quality and biodiversity at the centre of policy attention. However, a shortcoming of Denmark’s present climate and environmental policies is that they do not tackle the environmental pressures associated with food products consumed within Danish borders but produced overseas. In this context, a growing body of research proposes that allow country-specific estimation of environmental pressures from consuming locally sourced and imported products. This PhD project applies two consumption-based (CB) environmental accounting methods, namely the environmentally extended multi-regional input-output analysis and biophysical model of agricultural trade to evaluate Denmark’s national and subnational food-related CB accounts (or footprints) for GHG emissions (i.e. carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O)), and cropland, grassland and blue water use from 1995 to 2014. Secondly, the thesis quantifies the potential for Denmark to reduce its global food-related GHG emissions and resource consumption based on scenarios that include household dietary shifts towards plant-based foods and food waste prevention as well as improvements in livestock feed use efficiencies...
... The recent availability of global multi-region input-output (MRIO) databases (see Tukker & Dietzenbacher, 2013) has evoked several studies that compare the input-output tables in these databases, as well as analytical results derived from these. This paper proposes a novel method for such comparisons. ...
... In Section 2, we will present the methodology, including the mathematical details of the decompositions. We will also provide some benchmarks of the magnitudes of differences by comparing the input-output tables of the WIOD 2013 release (Dietzenbacher et al., 2013) for various years with each other. Section 3 is devoted to a description of the procedures to make the global MRIO tables from various databases comparable in terms of industry classification and country coverage. ...
... However, the CE indicator does not have an upper bound, so it is impossible to tell whether a given positive CE is large or small without a relevant benchmark value. To overcome this issue we computed CE benchmark values on the basis of WIOD's representations of the world economy from 1995 till 2011 (Dietzenbacher et al., 2013). We compare the world input-output Why are the results in Table 1 useful for our analysis? ...
Article
We introduce a cross-entropy (CE) indicator to quantify the extent to which two input–output tables or two tables with results based on input–output analysis differ from each other. Our work deploys a unique feature of the CE indicator: it can be decomposed, allowing for matrix comparisons at various levels within one coherent framework. To illustrate the power of this approach, we apply the technique to five multi-region input–output (MRIO) tables for 2011, derived from the Eora, EXIOBASE, GTAP, OECD and WIOD databases. We make pairwise comparisons between MRIOs and between global value chain (GVC) computations based on these MRIOs. We find that answers to questions related to broader aggregates are generally quite similar, but that answers to questions at the level of single industries can be rather different across MRIOs.
... In MRIO databases [47][48][49] , these quantities cover the sectors of many economies. Global MRIO databases cover the entire world economy [50][51][52][53] . In a multi-region context, the transactions matrix T (and, as a consequence, A, L, y and x) can be understood as being indexed by sector and region, as T rs ij and so on, where products flow from supplying sectors i = 1,…,I in regions r = 1,…,R, to be used by sectors j = 1,…,J or final demand entities k = 1,…,K in regions s = 1,…,S, and where matrices are of sizes IR × JS (T, A, L), IR × KS (y) or IR × 1 (x). ...
... Currently, a small number of MRIO frameworks are available to establish global MFs 51 . There have been efforts towards database comparison 71 , demonstrating general convergence of footprints 72 but some deviations in country and sector detail. ...
Article
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Sustainable development depends on decoupling economic growth from resource use. The material footprint indicator accounts for environmental pressure related to a country’s final demand. It measures material use across global supply-chain networks linking production and consumption. For this reason, it has been used as an indicator for two Sustainable Development Goals: 8.4 ‘resource efficiency improvements’ and 12.2 ‘sustainable management of natural resources’. Currently, no reporting facility exists that provides global, detailed and timely information on countries’ material footprints. We present a new collaborative research platform, based on multiregional input–output analysis, that enables countries to regularly produce, update and report detailed global material footprint accounts and monitor progress towards Sustainable Development Goals 8.4 and 12.2. We show that the global material footprint has quadrupled since 1970, driven mainly by emerging economies in the Asia-Pacific region, but with an indication of plateauing since 2014. Capital investments increasingly dominate over household consumption as the main driver. At current trends, absolute decoupling is unlikely to occur over the next few decades. The new collaborative research platform allows to elevate the material footprint to Tier I status in the SDG indicator framework and paves the way to broaden application of the platform to other environmental footprint indicators. Despite the wide acceptance of the role of the material footprint indicator in sustainability, no reporting facility at present provides sufficient information on countries’ material footprints. This study presents a new research platform that regularly provides detailed global material footprint accounts.
... MRIO tables are usually constructed through harmonised national supply-use tables (SUTs) and/or inputoutput tables (IOTs). These show truncations between domestic industries supplemented by tables breaking down imports by users, and have increasingly become indispensible for relevant macroeconomic and trade policy analyses (for an overview see Ahmad 2013, Jones et al. 2013, Dietzenbacher et al. 2013, Amadou and Cabral 2014. 22 MRIO tables allow for analysis of value contribution along supply chains, enabling the analysis of sources and destinations of value that flow through GVCs (for recent examples see Johnson andNoguera, Lenzen et al. 2013, UNCTAD 2013). ...
... MR IOT 56 x 56 (1975); 78 x 78 (1985)(1986)(1987)(1988)(1989)(1990)(1991)(1992)(1993)(1994)(1995); 76 x 76 (2000,2005) 1975 -2005 Employment matrices (2000,2005) Harmonise IOTs based on cross-country survey information; link via trade; manual balancing to reduce discrepancies within certain bounds a i -number of industries, p -number of products; SUT… supply-use tables, IOT… Input-Output tables Source: Tukker and Dietzenbacher (2013) The spate of recent MRIO tables greatly improves our understanding of how GVCs function in practice. They are, however, subject to a degree of uncertainty -as is common with any applications using accounts data and trade flow data -which is augmented when examining developing counties, where statistical capacities tend to be substantially worse. ...
... on China (Chen et al., 2011;Shao et al., 2017;Xu et al., 2019), and cities (Chen et al., 2016a;Chen et al., 2016b;Fry et al., 2018;Wiedmann et al., 2016). However, so far the vast majority of models operate at either national or global levels (Tukker & Dietzenbacher, 2013;. Incorporating sub-national spatial detail into these databases is especially important for research questions that deal with countries that exhibit significant regional variation in climate, resource endowment, production regimes, or international trade focus, such as the United States, Canada, Brazil, Russia, India, China, or Australia. ...
... Note that in this paper we do not discuss the details of MRIO construction and assume these two MRIOs are available as a starting point. For an overview of MRIO construction see Tukker and Dietzenbacher (2013). ...
Article
Industrial Ecology Virtual Laboratories (IELabs) enable the construction of national‐to‐local‐scale multi‐regional input–output (MRIO) models. These IELabs have been proven to be especially important for analyzing research questions that warrant sub‐national spatial detail. The field of industrial ecology has clearly progressed from the time of national‐only input–output tables. Here, we present a newly developed tool called NLab—“nested IELab”—that nests sub‐national MRIO tables within global country‐scale MRIOs. This capability allows for the investigation of interactions between sub‐national production and consumption systems, with global systems interlinked via international trade. We provide a technical and mathematical roadmap for construction of nested input–output tables in the NLab, and demonstrate this capability through a real‐world assessment of the Western Australian wine industry. Our results suggest that nested MRIO tables provide an added layer of detail at a regional level, when undertaking consumption‐based footprint assessments, leading to improved assessment of quantification of regional impacts. The NLab presented in this work provides tools for analysis of complex trade linkages between industries at various scales, which has the further potential to open avenues for policy‐makers to analyze the implications of local decisions at a global level, and vice versa.
... The price data can be expressed as the value added for each process, and there is a range of LCA models that support these calculations. Modelling capability has also advanced for multi-regional input-output models (MRIO) (Tukker and Dietzenbacher 2013) and includes examples such as the high industry and regional resolution of the Global MRIO Lab (Lenzen et al. 2017). MRIO models have been applied for calculating living wage gaps using value added accounts (Mair et al. 2018) and to show the importance of considering working hours and skill levels for calculating the living wage gap (Hall and Suh 2020). ...
... For example, the SHDB draws upon the Global Trade Analysis Project (GTAP) MRIO which also provides data for working hours and skills (Benoit-Norris et al. 2014). Alternatively, the World Input Output Database (WIOD) (Timmers 2012) was selected by Hall and Suh (2020) to calculate living wage gaps in the global economy because of reporting of working hours and additional resolution of skill levels. Similarly, Mair et al. (2018) selected WIOD for calculating the living wage gap (referred to in their paper as living labour compensation) due to the model being free and publicly available. ...
Article
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PurposeThis paper explores the definition of fairness and reviews recent developments for methods, data and models for the social life cycle assessment (S-LCA) fair salary subcategory indicator. The living wage gap (LWG) is proposed as a new indicator for quantifying poverty in global supply chains, with particular relevance to sustainable development goal (SDG) 1 no poverty.Methods Ethical theories and existing S-LCA fair salary methods are reviewed to define arguments and limitations for defining a fair salary. The LWG is then expressed as a S-LCA fair salary subcategory indicator following existing typologies. The computational structure of the LWG is defined using existing methods for the living wage, value added and the Leontief price model. A general modelling framework is developed to accommodate initiatives since the publication of the S-LCA methodological sheets and to discuss challenges and opportunities for implementation.Results and discussionThe LWG is a S-LCA type II quantitative fair salary subcategory indicator for the impact category of working conditions. The evaluation of fairness is limited to basic needs. A broader definition of fairness requires meeting other primary social goods such as liberties and freedoms for workers and limiting inequality based on primary social goods of the least advantaged. The modelling framework draws upon background models to identify areas for primary data collection and provide a complete system boundary. A novel use of the Mincerian earning function is applied for estimating the average LWG for LCA process data. The development of both LCA price data and detailed multi-regional input–output models are discussed for addressing uncertainty for industry and geographic resolution. The foreground model draws upon Ankers method for primary data collection, which has been noted in many S-LCA fair salary initiatives and has been adopted by a consortium of ethical trade organisations.Conclusions The LWG is a limited measure of fairness which focusses on basic needs of workers and directly addresses UN SDG 1 no poverty. The method and modelling framework show the potential to use recent developments to calculate the LWG for the whole supply chain. Research is recommended for Living Wage Benchmarks to capture urban, rural and regional differences within a country and to consider gender in LWGs. Collaboration with ethical trade labelling initiatives is also recommended to address these challenges and to gain policy impact.
... 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. ...
Article
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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.
... In terms of data sources, MRIO studies require the use of an MRIO database. In recent years, several MRIO databases have been developed with different levels of sectoral and regional detail (Tukker & Dietzenbacher, 2013). ...
Technical Report
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The European Union is a major trading partner of bio-based products and commodities worldwide. It is therefore crucial to estimate the consequences of EU consumption in terms of the related land demand both domestically and outside the EU. Land footprinting methods, inherently adopt life cycle thinking. They allow estimate land embedded in commodities and goods consumed by a country or region, distinguishing between domestic land and virtual land embedded in trade. This project aims to build a transparent and straightforward model that performs the yearly estimation of the EU’s land footprint, using official data sources as a starting point. This report presents the development of a land footprinting model (hereafter the LAFO model) by illustrating its conceptual design and methodological assumptions, the calculations performed, the underlying data sources used, and the results yielded by the model for a chosen reference period, comparing them with the results of similar studies. Detailed results of the LAFO model are presented for the EU27 relatively to the year 2018, showing that the EU was a net importer of cropland (net imports of 21 Mha), grassland (net imports of 1 Mha) and forest land (net imports of 20 Mha*y) embedded in bio-based products. The temporal evolution of the EU land footprint between 2014 and 2019 confirmed these results throughout this timeframe. An analysis of the countries on which the EU was mostly relying for imports of virtual cropland, grassland and forest land in 2018 highlights that the overseas EU land footprint was concentrated in relatively few countries, varying according to the type of products and commodities (e.g. oilcake from Brazil, oilseed crops and paper from the US, wood and paper from the Russian Federation, cereal crops from Ukraine, cotton from Bangladesh, vegetable oils from Ukraine and Indonesia, livestock products from Brazil and the UK). When comparing the results yielded by the LAFO model with the existing literature, the estimations of the EU per capita cropland footprint and forest land footprint are aligned with other studies adopting a physical-based accounting approach. Less alignment can be found in the case of the EU grassland footprint (both between this study and the existing literature and in general across different studies), confirming that the grassland footprint estimation is affected by higher uncertainty on input data, compared to cropland and forest land footprints.
... Tables that feature more than one region/country are called multi-regional input-output (MRIO) tables. A special issue in the journal Economic Systems Research (Tukker and Dietzenbacher, 2013) summarises the various global MRIO databases that have been used for quantifying environmental and social impacts embodied in international supply chains (Wiedmann and Lenzen, 2018). ...
Article
Successful implementation of the Sustainable Development Goals (SDGs) requires world countries to account for actions that inadvertently generate negative impacts on other countries. These actions/effects are called 'spill-overs', and can hinder a country's SDG progress. In this work, we analyse negative social spillover effects, focussing specifically on the occupational health and safety aspects of workers in textile supply chains. We select two indicators: fatal accidents and non-fatal accidents that take place in global supply chains for satisfying consumption of textile products (such as clothing, leather products) by European Union (EU) countries. Specifically, we scan global supply chains originating in countries outside of EU for meeting the demands of its citizens. To this end, we employ a well-established technique of multi-regional input-output analysis, featuring information on 15,000 sectors for 189 countries, to scan international supply chain routes that are linked to consumption of textile products by EU countries. Our findings suggest that Italy, Portugal are collectively responsible for about 80% of both fatal-and non-fatal accidents that are attributed to the EU's consumption-based footprint. These findings not only call for a need for coherent SDG policies that consider spillover effects, but also the need for these effects to be included in EU's strategic instruments and policy-related tools.
... In Appendix A, we display some examples of current efforts in multidisciplinary energy modelling to address the challenges of a sustainable energy transition, some of them already applied to the implementation of Energy and Climate Plans in the Spanish context. Input-Output Tables (IOT) and the extended Multiregional Input-Output (MRIO) models provide a systemic, multisectoral, multiregional view, in which it is possible to include different indicators for policy advice (Wood et al., 2020;Vanham et al., 2019;Tukker and Dietzenbacher, 2013;Wiedmann and Barrett, 2013): environmental impacts (emissions), resource needs (water, land), socio-economic impacts (employment, qualifications), and social risks along the value chains. They can help to define and quantify synergies and trade-offs between different measures and investments. ...
Article
Relevant energy questions have arisen because of the COVID-19 pandemic. The pandemic shock leads to emissions’ reductions consistent with the rates of decrease required to achieve the Paris Agreement goals. Those unforeseen drastic reductions in emissions are temporary as long as they do not involve structural changes. However, the COVID-19 consequences and the subsequent policy response will affect the economy for decades. Focusing on the EU, this discussion article argues how recovery plans are an opportunity to deepen the way towards a low-carbon economy, improving at the same time employment, health, and equity and the role of modelling tools. Long-term alignment with the low-carbon path and the development of a resilient transition towards renewable sources should guide instruments and policies, conditioning aid to energy-intensive sectors such as transport, tourism, and the automotive industry. However, the potential dangers of short-termism and carbon leakage persist. The current energy-socio-economic-environmental modelling tools are precious to widen the scope and deal with these complex problems. The scientific community has to assess disparate, non-equilibrium, and non-ordinary scenarios, such as sectors and countries lockdowns, drastic changes in consumption patterns, significant investments in renewable energies, and disruptive technologies and incorporate uncertainty analysis. All these instruments will evaluate the cost-effectiveness of decarbonization options and potential consequences on employment, income distribution, and vulnerability.
... In addition to avoiding truncation errors, the EEIOA approach has the advantage of being faster -it can be used to conduct an LCA study within a few hours (Hendrickson et al. 2006). There are several EEIOA databases available, most notably EORA, EXIOBASE, WIOD, GTAP-MRIOT, GRAM, and IDE-JETRO (Tukker and Dietzenbacher 2013). However, not all countries are typically covered in these databases underpinning the EEIOA approach to LCI analysis, but some are rather aggregated into larger regions, such as "rest of the world Asia and Pacific" and "rest of the world Africa." ...
Chapter
This chapter introduces the life cycle inventory (LCI) analysis – the topic of this volume. A brief history of the concept is provided, including its procedure according to different standards and guidance books. The LCI analysis phase of the life cycle assessment (LCA) framework has remained relatively constant over the years in terms of role and procedural steps. Currently, the LCI analysis is situated in between the goal and scope definition phase and the life cycle impact assessment phase in the LCA framework, although it is interconnected also with the interpretation phase. Central concepts in LCI analysis are defined, including product system, process, flow, functional unit, and system boundary. Four important steps of LCI analysis are outlined: constructing a flow chart, gathering data, conducting calculations, as well as interpreting results and drawing conclusions. The focus is on the process LCA approach, which is the most common in LCA practice. Environmentally-extended input-output analysis is also described briefly. Finally, an overview of the other chapters of this volume and their relevance to the topic of LCI analysis is provided.
... The MRIO analysis captures economic linkages between various sectors of different regions [45,46]. The fundamental mathematics of the MRIO model can be shown as: ...
Article
The United Nations’ Sustainable Development Goals (SDGs) provide a guideline for humanity to respond to an array of pressing challenges. Due to our increasing need for energy supply and more stringent standards for environmental quality, having access to affordable and clean energy has been the foremost pursuit of SDG 7. Development in renewables represents a way to achieve this goal. Here, we establish a Footprint-Driver-Scenario (FDS) framework for accounting for the renewable energy footprint of 189 global economies based on a global multi-regional input − output (MRIO) model and identifying the major drivers behind based on the logarithmic mean Divisia index (LMDI) in 1990–2015, and projecting the national renewable energy footprint by 2030 based on the Shared Socioeconomic Pathways (SSPs) scenarios. We find that total and per capita renewable energy footprint varies substantially between nations. The improvement in energy efficiency (SDG 7.3) and decline in footprint-to-energy ratio contribute to the reduction of renewable energy footprint, as opposed to the per capita GDP, population, share of renewable energy in energy mix (SDG 7.2) and proportion of population with access to electricity (SDG 7.1), all of which lead to footprint increase considerably. Despite the great progress in SDGs 7.1–7.3 by 2030, the expected goals still cannot be fully reached in any of the SSP scenarios. Our research findings can assist policy makers in better understanding the critical role of renewable energy in achieving SDG 7. The FDS framework can be potentially applied to a wide range of SDGs at the global, national and sub-national scales.
... Input-output (IO) based methods have increasingly been applied in environment-related fields along with the accumulation of MRIO table data (Andrew et al., 2009;Tukker and Dietzenbacher, 2013;Wiedmann, 2009). There are two literature groups of IO-related analysis: the first is devoted to accounting for emissions embodied in final goods consumption for countries (Aichele and Felbermayr, 2015;Baiocchi et al., 2010;Davis and Caldeira, 2010;Kolcava et al., 2019;Peters, 2008;Peters et al., 2012). ...
Article
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The impact of international trade on national decarbonization outcomes is inconclusive. Taking Germany as a case study, we developed a relative intersectoral linkage analysis based on the global value chain (GVC) framework. We identified nations' emission changes due to the transition of composition, scale, and technology in the fragmented trade network. The results show that in the process of reducing emissions, on the one hand, the supply of local emission-intensive sectors to the domestic economy and international trade has shrunk. On the other hand, we found comprehensive emission intensity reduction driven by downstream sectors’ production, even if there was carbon leakage in the participation of backward GVCs. However, when emission-intensive production was concentrated in the local market, GVC backward participation positively affected the emission intensity of the local economy. According to the findings, we assert that continuous technological innovation and reconstruction of the value chain are necessary for sustainable decarbonization from the local to the global economy.
... The consequence is that it provides a complete assessment of all the scopes (including scope 3) without truncation errors [32]. The potential of EEIO is fully deployed in the multiregional models (MRIO) that are increasingly developed along with the recent development of multiregional databases [45,63]. MRIO provides a full representation of trade flows that allows mapping the complex network of interrelationships between sectors and countries all over the world through the global supply chains [69], avoiding assumptions like the use of the domestic technology for the production of imported products and services [6]. ...
Chapter
The tourism sector is one of the most affected by COVID-19 pandemic. The global shutting down of non-essential sectors and the maintained global mobility restrictions have led to the industry’s partial closure worldwide. Tourism could play a leading role as the driver for achieving the sustainable development goals (SDG) and as an engine of wealth generation and cultural preservation. However, the negative impacts on the environment have to be considered when shaping the forthcoming and refurbished post-pandemic tourism industry of the future. In this chapter, we propose an environmentally extended input–output model to estimate the tourism carbon footprint to assess the sustainability of the tourism industry and applied it to tourism in Spain. This modelling allows for identifying direct and indirect emissions hot spots along the complex and intricate global value chains. The main results show how while Spain’s tourism contribution to GDP accounts for 12.3%, its carbon footprint accounts for 15% of the Spanish total emissions, which is above the global average (8%). In global terms, 29% of the total carbon footprint is imported, so it is, directly or indirectly, embodied in the global production chains. It is concentrated in some close European Union countries, China, BRIIAT, and the United States. Sectorally, the Spanish tourism carbon footprint is concentrated in some sectors where emissions are mostly domestic (air transport, land transport, or retail trade).
... The recent construction of several Global Multiregional Input-Output (GMRIO) databases has renewed interest in developing multiregional models Tukker & Dietzenbacher, 2013). However, linking sectoral information across regions and countries has a long tradition in the regional science literature and, more in general, in economics (Miller & Blair, 2009). 2 Similarly, IO data and techniques have attracted interests of scientists in other economic fields such as international economists. ...
Article
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International trade has improved living standards but has also become a major channel for spreading shocks on a global scale. The increasing relevance of intersectoral linkages and trade in intermediates renewed interest in input–output techniques. This paper enriches the literature on empirical trade models with an input–output/econometric approach including substitution effects and price spillovers. Our model shows that (a) trade elasticities and bilateral shares are not constant in time and differ across sectors and countries; (b) international price changes alter the relative competitiveness between competitors; (c) final demand components such as consumption and investment react to changes in international prices. Large multi-country shocks produce feedback effects in national economies as they adapt by import substitution across exporters, by changing the import content of domestic production and by adjusting final demand. These feedbacks affect the global demand producing an asymmetric non-zero-sum game.
... Our analysis makes use of EXIOBASE V3 for the year 2011, a global MRIO database. EXIOBASE is not the only global MRIO database available, but to the best of our knowledge, it is the only one that combines product details for the agricultural sector together with a large number of environmental extensions [17]. EXIOBASE discerns more than 200 product categories and 48 countries/regions and includes around 40 types of emissions, material extraction, water use and land use by sector and region as environmental pressures. ...
Article
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This study shows the environmental impacts and economic performance due to agricultural trade through The Netherlands. Using the demand-driven input–output model and the database EXIOBASE (2011), we first analysed the environmental impacts and value added directly generated abroad by the agricultural sector through imported final consumption in The Netherlands; we then compared the environmental impacts and value added generated in The Netherlands by the agricultural sector due to exports to other countries. The results show that the Dutch consumption of imported agricultural products had significant greenhouse gas emissions of 19,386 kt CO2-eq, land use of 280,525 km2 and water consumption of 50,373 M.m3, while impacts in The Netherlands due to agricultural exports amounted, respectively, to 13,022 kt CO2-eq, 9282 km2 and 3339 M.m3. At the same time, we found that Dutch agricultural production had a higher value added to pressure ratio than abroad. These differences highlight the great dependency of Dutch final consumption on foreign natural resources, a significant trade imbalance for environmental impacts with relatively smaller economic benefits for countries exporting to The Netherlands. With these results, we suggest that it is of great importance that sustainability policies for the agricultural sector not only address environmental impacts domestically but also impacts and value creation abroad.
... The increasing compilation and accessibility of input-output tables have greatly facilitated the application and development of IO model, such as EORA, EXIOBASE, CEADs and WIOD (Lenzen et al. 2012;Mi et al. 2017;Tukker and Dietzenbacher 2013). Eora MRIO database was developed by Lenzen et al. (2012Lenzen et al. ( , 2013, which provides a time series of high-resolution IO tables with matching environmental and social satellite accounts for 189 economies. ...
Article
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With the development of interregional trade, a potential disaster that happens in one place could cause enormous economic losses in distant areas. Timely and comprehensive post-disaster assessments play a significant role in guiding disaster recovery, and for reconstruction and planning for future disaster risk reduction. In this study, we evaluate the post-disaster economic impacts due to Sichuan earthquake in 2008 and its regional and industrial spillover effects based on a Chinese multi-regional input–output table. The results show that the 2008 Sichuan earthquake caused around 1725 billion US dollars of value-added losses and 69.9 million people of employment losses. The Chemical industry in Guangdong and Zhejiang suffered severe value-added losses due to indirect effects through supply chains. Furthermore, public administration in Henan, Sichuan, and Guangdong suffered large employment losses. In general, we find that the economically less developed provinces are more susceptible to larger losses compared to the economically developed provinces. The results in this study can provide information for decision-makers to devise effective solutions on how to release relief funds and for dividing adaptation plans to avoid serious economic losses due to future disasters.
... The starting point of the analysis is a world IO table (also known as a Global Multiregional Input-Output table, see Tukker & Dietzenbacher, 2013, for an overview), which looks as follows for the case of N countries. 4 Assuming n industries in each country, Z RS is the n × n matrix with intermediate deliveries and its element z RS ij gives the delivery of goods and services (expressed in million US$) that industry i in country R sells to industry j in country S. The element f RS i of the vector f RS gives the delivery of goods and services from industry i in country R for household consumption and other domestic final demand purposes (including private investments, government consumption and investments, and ...
Article
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Globalization has brought about concerns of domestic job losses due to outsourcing to countries like China. The ‘employment footprint’ concept provides new insights into the implications of trade for employment. Using this approach for the period of 1995–2008, we analyze the relation of US jobs with international trade, particularly with China. Furthermore, we compare the US employment footprint with its labor endowment to assess if the country could be self-sufficient in terms of labor. We find that the US’s consumption increasingly depends on foreign workers. The country ‘consumes’ more labor than is nationally available; thus, self-sufficiency is not possible under realistic assumptions. Moreover, the US has benefited from jobs – especially in services – generated by the world economy. Referring to Albee’s famous play about living in illusions, we use ‘Virginia Wu’ as a Chinese version of ‘Virginia Woolf’ to argue that the perceived threat of China (Virginia Wu) is only an illusion.
... We used EXIOBASE 3 data for 2010 23,24 . The EXIOBASE is a MRIO table that includes 44 countries, five international regions (Middle East, Other Asia, Other America, Other Europe, and Other Africa), and 163 industrial sectors. ...
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Air pollution and its health-related effects are a major concern globally, and many people die from air pollution-related diseases each year. This study employed a structural path analysis combined with a health impact inventory database analysis to estimate the number of consumption-based PM 2.5 emission-related deaths attributed to India’s power supply sector. We identified critical supply chain paths for direct (production) electricity use and indirect (consumption) use. We also considered both domestic and foreign final demand and its effect on PM 2.5 emission-related deaths. Several conclusions could be drawn from our results. First, the effect of indirect electricity usage on PM 2.5 emission-related deaths is approximately four times larger than that for direct usage. Second, a large percentage of pollution-related deaths can be attributed to India’s domestic final demand usage; however, electricity usage in the intermediate and final demand sectors is inextricably linked. Third, foreign final demand sectors from the Middle East, the USA, and China contribute indirectly toward PM 2.5 emission-related deaths, specifically in the rice export supply chain. The results show that the Indian government should implement urgent measures to curb electricity use in rice supply chains in order to reduce the number of PM 2.5 emission-related deaths.
... Hence, the array of methods applied needs to expand considerably and especially in the domain of social sciences. e input-output model and its extension approaches are particularly valuable in analyzing such dilemmas as they are adept in investigating how economic conditions give rise to certain types of regional dilemma [40]. e input-output approaches provide a possible method for regional climate adaptation research to deepen understanding of economic system climate vulnerability and key adaptation trajectory, and then formulate targeted solutions. ...
Article
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From the microperspective, climate change restricts human life in many aspects, and it affects the regional economic system from the macroperspective. The paper presents an inoperability input-output model (IIM) that is an extension approach of the Leontief input-output model. The IIM is able to provide a feasible methodology for measuring the impact of vulnerable economic factors on the whole economic system and identifying the key adaptation trajectory of the economic system. The IIM is applied in Tianjin to explore its dilemmas facing the increased demand for electricity, water, and public health service sectors under the RCP2.5, RCP4.5, and RCP8.5 climate scenarios. The results indicated that the inoperability ranking of all economic sectors is the same under the three climate scenarios. The key adaptation trajectory in Tianjin is S40, S27, S25, S17, S12, S02, S21, S16, S09, S24, S29, S33, S19, S13, and S15 sector in order. The costs required by the key adaptation trajectory to adapt to climate change account for more than 90% of that required by the whole economic system. These results can be helpful for policy-makers to prioritize sectors in terms of climate adaptation and understand the efficacy of climate change risk mitigation strategies.
... Early publications by the Water Footprint Network (e.g., Hoekstra and Chapagain, 2008) are based on the combination of such trade databases and Water-Stat to produce WF assessments. Trade data are also organized and shared as input-output tables, tracing supply chains across sectors and countries, whose worldwide dimension is captured by global multi-regional input-output (MRIO) tables (see Tukker and Dietzenbacher, 2013, for a review). In such a framework, some MRIO databases offer specific water-related extensions, quantifying water volumes associated with international trade (e.g., Geschke and Hadjikakou, 2017). ...
Article
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To support national and global assessments of water use in agriculture, we build a comprehensive database of country-specific water footprint and virtual water trade (VWT) data for 370 agricultural goods. The water footprint, indicating the water needed for the production of a good including rainwater and water from surface water and groundwater bodies, is expressed as a volume per unit weight of the good (or unit water footprint, uWF) and is here estimated at the country scale for every year in the period 1961–2016. The uWF is also differentiated, where possible, between production and supply, referring to local production and to a weighted mean of local production and import, respectively. The VWT data, representing the amount of water needed for the production of a good and virtually exchanged with the international trade, are provided for each commodity as bilateral trade matrices, between origin and destination countries, for every year in the period 1986–2016. The database, developed within the CWASI project, improves upon earlier datasets because it takes into account the annual variability of the uWF of crops, it accounts for both produced and imported goods in the definition of the supply-side uWF, and it traces goods across the international trade up to the origin of goods' production. The CWASI database is available on the Zenodo repository at https://doi.org/10.5281/zenodo.4606794 (Tamea et al., 2020), and it welcomes contributions and improvements from the research community to enable analyses specifically accounting for the temporal evolution of the uWF.
... The EXIOBASE database stands out as one of the most popular Environmentally extended multi-regional IO (EE-MRIO) databases. (a) It is compatible with multiple environmental satellite accounts (Tukker and Dietzenbacher 2013, Merciai and Schmidt 2018, Wood et al 2018. In our study, environmental emissions include six major GHGs (i.e. ...
Article
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The marine economic activities has become a vital economic driving force for development of China's economy. However, the trajectory of greenhouse gas (i.e. GHG) emissions associated the fast growing marine economy and its role in emission mitigation remain unclear. Through compiling high-resolution and time-series environmental input–output tables for 2002, 2007, 2012 and 2017, this study quantify development of 13 key marine industries in driving national economic development and its supply chains, and assesses the direct and indirect contributions of marine industries to the national economy and GHGs emissions. Our results show that the total emissions of marine economy increased by 2.3 times from 2002 to 2017, and the share of that in national total emissions increased by 43.3%. The economic output of marine economy may lead to up to 1.8 times of the total economic output in the upstream industries, while the indirect emissions of major marine economy embodied in the upstream supply chains is on average 3.5 times of direct emissions from marine industries. Our findings highlight the necessity of considering total supply chain GHGs emissions associated with the fast growing marine economy to better achieve China's climate mitigation targets.
... In the online Appendix we provide a robustness check, using an alternative set of input-output tables from the OECD-WTO TiVa database. The TiVA database and the WIOD are based on similar sources and construction philosophy (see Tukker and Dietzenbacher 2013). A major difference is that the TiVa database contains tables with separate rows and columns for production in export processing zones (EPZ) and production in non-EPZ for China and Mexico. ...
Article
In this paper, we offer a new framework to measure cross-border supply chain fragmentation and its impact on the global trade elasticity. Firstly, we introduce the supply chain fragmentation ratio that sums the volume of imports by all countries that participate in a particular supply chain. We find that supply chain fragmentation slowed down after 2010 for most goods, but not for services. We demonstrate the importance of using trade and production data at constant prices in measuring fragmentation trends. Secondly, we quantify the impact of fragmentation on the elasticity of trade to world GDP, extending the framework of Bems et al. (Am Econ Rev Pap Proc 101(3):308–312, 2011). We account for trade effects from fragmentation within supply chains as well as asymmetric shocks to final demand. We find that the declining pace of fragmentation accounted for more than a third of the decline in the global trade elasticity after 2010.
... Based on preliminary methodological work byOosterhaven & Bouwmeester (2016),Oosterhaven & Többen (2017) analyse the effects of the heavy rainfall events of 2013 in Germany using MRIO data structures, which divide macroeconomic developments into 16 inner-German regions.Koks & Thissen (2016) andKoks et al. (2019) estimate the further economic impacts of a flood event in the Rotterdam region for more than 250 European economic regions.13 Tukker and Dietzenbacher (2013) orWiedmann and Barrett (2013), among others, offer introductory presentations of these data sets as well as references to first applications of global MRIO data sets in (environmental-economic) policy advice.14 See, inter alia,Giljum et al (2015),Galli et al (2017) orChen et al (2018) as illustrative examples.15 ...
Research
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Methods for climate change risk assessments: An international knowledge review
... Though single-region IO models are widely utilized in earlier research papers [41,42], MRIO models are thought-about because they advanced within the analysis of the triple bottom line (TBL) impacts of consumption and production at a worldwide scale [43,44]. Of late, there are various world multiregional databases developed for the environmental footprint analysis of production, such as the World Input-Output data (WIOD), spatial association information and Input-Output tools for Policy Analysis (EXIOPOL), world Resource Accounting Model (GRAM), world Trade Analysis Project (GTAP) and Eora [45]. Many studies used these MRIO databases and centered on the environmental footprint of consumption [46], producing [47,48], trade [49], and nations [50]. ...
Article
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Global interest in LNG products and supply chains is growing, and demand continues to rise. As a clean energy source, LNG can nevertheless emit air pollutants, albeit at a lower level than transitional energy sources. An LNG plant capable of producing up to 126 MMTA was successfully developed and simulated in this study. A hybrid life cycle assessment model was developed to examine the social and human health impacts of the LNG supply chain’s environmental air emission formation. The Multiregional Input–Output (MRIO) database, the Aspen HYSYS model, and the LNG Maritime Transportation Emission Quantification Tool are the key sources of information for this extensive novel study. We began our research by grouping environmental emissions sources according to the participation of each stage in the supply chain. The MDEA Sweetening plant, LNG loading (export terminal), and LNG transportation stages were discovered to have the maximum air emissions. The midpoint air emissions data estimated each stage’s CO2-eq, NOx-eq, and PM2.5-eq emissions per unit LNG generated. According to the midpoint analysis results, the LNG loading terminal has the most considerable normalized CO2-eq and NOx-eq emission contribution across all LNG supply chain stages. Furthermore, the most incredible intensity value for normalized PM2.5-eq was recorded in the SRU and TGTU units. Following the midpoint results, the social human health impact findings were calculated using ReCiPe 2016 characterization factors to quantify the daily loss of life associated with the LNG process chain. SRU and TGTU units have the most significant social human health impact, followed by LNG loading (export terminal) with about 7409.0 and 1203.9 (DALY/million Ton LNG produced annually), respectively. Natural gas extraction and NGL recovery and fractionation units are the lowest for social human health consequences.
... To assess the environmental costs embodied in imported products, various approaches can be followed. In the ideal case, one would use a GMRIO, such as EXIOBASE, GTAP, or EORA (Tukker and Dietzenbacher, 2013;Wood et al., 2019) to estimate the emissions and resource use embodied in Indonesian imports. However, none of the available GMRIOs include external cost estimates for these emissions and resource uses. ...
Article
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Reducing environmental costs is a significant concern for Indonesia's future. This paper explores Indonesia's environmental costs from emissions and forest resources and identifies the priority sectors in terms of economic and environmental performance. We use environmentally extended input–output analysis for calculating the environmental costs and further extension with linkages analysis to identify the priority sectors. The study finds that the total environmental costs of emissions due to final demand is around 7% of the GDP. This environmental cost is significantly due to domestic products with household consumption being the largest contributor. The top 10 sectors in the Indonesian economy are responsible for about 70% of the total environmental costs of emissions. Based on pollutant source, SO x , NO x , CO 2 , and CH 4 contribute more than half of emissions' ecological costs. We also find that forest resources' environmental cost is only 7.5% of the total environmental cost. Last, this study finds that key sectors of economic and sustainability points of view are textile manufacturing; publishing, printing, and reproduction of recorded media; chemicals n.e.c.; manufacture of other non-metallic mineral products; construction; and other land transport. Finally, this paper discusses the policy options for Indonesia to promote sustainable consumption and production in terms of reducing environmental costs while managing economic development.
... Multiregional input-output tables (MRIOT) provide a representation of the connection between national economies including the interlinkages between economic sectors and final demand ( Miller & Blair, 2009 ). It allows tracking the transformation of products throughout of the global supply chain and unveiling and identifying the environmental pressures embodied in the international trade ( Tukker & Dietzenbacher, 2013 ).Therefore, MRIO analysis provides a suitable toolbox for assessing the environmental pressures induced by environmental policies at the global and national levels. ...
Article
The Circular Economy (CE) has been suggested as an alternative to the traditional linear model of production, consumption, and disposal. It implies a minimisation of raw material consumption and emission, and that end-of-life materials are treated as resources rather than waste. However, the potential benefits and burdens of CE strategies at the national and subnational levels are not well understood. This paper assesses the potential environmental pressures of implementing a CE intervention (CEI) in Belgium, Brussels, Flanders, and Wallonia. The CEI include Delayed Replacement (DR), Reuse, Repair, Remanufacturing (3R), Use Intensification (UI), Design Improvement (DI) and Sharing. We apply the unique multiregional hybrid input-output tables at Belgian subnational level that we developed for 2011. Implementing exogenous technology and household consumption changes, we assess the environmental pressures of implementing CEI, by comparing the pressures occurring in the business-as-usual scenario to those occurring in a counterfactual CE scenario. The results show that the implementation of CEI in Belgium, Brussels, Flanders, and Wallonia could lead to a net decrease of pressures in each region and overseas, with the highest reduction in Europe. Except for DR, all interventions could lead to impact reduction, with 3R and UI showing the highest environmental performance. Our results constitute novelties providing substantial insights for CE policies implications. It is meaningful to embed well-attuned climate change, resource supply risks, and waste generation considerations into CE policies. Moreover, the interdependencies between countries/regions worldwide calls for concerted efforts to tackle environmental pressures geared towards a transition to a CE. Lastly, we also intend to foster raising attention and inspiration of practitioners and policymakers. The former with regard to developing more CE scenario analyses at different geographic scales. The latter with regard to integrate the CE considerations into foreign policies.
... To the best of our knowledge, this measurement has never been done before. Global MRIO tables summarize all linkages between the countries and/or sectors involved in production and various sets of tables have become publicly available in the last 10 years (Tukker & Dietzenbacher, 2013). The research questions we want to answer are the following. ...
Article
Due to international fragmentation, production increasingly occurs in global supply chains (GSC). The common belief is that this leads to more specialization, which implies more concentration of imports and exports over time. In this paper, we empirically test this hypothesis by analysing the geographical and sectoral concentration of GSC over the period 1995–2011. We adapt the traditional Herfindahl’s concentration indexes to a multi-regional input–output framework. Taking the information on intersectoral and interregional linkages into full account gives the concentration indexes of GSC. The indexes are at different aggregation levels, which enables us to examine both geographical and sectoral concentration patterns. After that, we analyse the effect a country’s geographical and sectoral concentration on its gross domestic product (GDP) per capita. Our findings are: an increase of geographical and sectoral concentration of GSC from 1995 to 2011; a growing role in global production chains played by China and other Asian countries; less concentration for European Union countries; a significant positive effect of geographical concentration on GDP per capita; and a significant negative effect of sectoral concentration.
... The element l ij of L quantifies the total upstream, i.e., direct and indirect, inputs from sector i that are required to produce a unit of industry output j for final demand (Miller and Blair, 2009). MRIO tables integrate national IO tables and bilateral trade accounts and contain data for a large number of countries (Tukker and Dietzenbacher, 2013). MRIO analysis is frequently applied for assessments of environmental pressures embodied in international trade (Wiedmann and Lenzen, 2018). ...
Article
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Unequal exchange theory posits that economic growth in the “advanced economies” of the global North relies on a large net appropriation of resources and labour from the global South, extracted through price differentials in international trade. Past attempts to estimate the scale and value of this drain have faced a number of conceptual and empirical limitations, and have been unable to capture the upstream resources and labour embodied in traded goods. Here we use environmental input-output data and footprint analysis to quantify the physical scale of net appropriation from the South in terms of embodied resources and labour over the period 1990 to 2015. We then represent the value of appropriated resources in terms of prevailing market prices. Our results show that in 2015 the North net appropriated from the South 12 billion tons of embodied raw material equivalents, 822 million hectares of embodied land, 21 exajoules of embodied energy, and 188 million person-years of embodied labour, worth $10.8 trillion in Northern prices – enough to end extreme poverty 70 times over. Over the whole period, drain from the South totalled $242 trillion (constant 2010 USD). This drain represents a significant windfall for the global North, equivalent to a quarter of Northern GDP. For comparison, we also report drain in global average prices. Using this method, we find that the South’s losses due to unequal exchange outstrip their total aid receipts over the period by a factor of 30. Our analysis confirms that unequal exchange is a significant driver of global inequality, uneven development, and ecological breakdown.
... Daudin et al. [27] proposed the concept of "value-added trade" for the first time and calculated the distribution of added value in the exports of various industries in various countries. After that, the relevant input-output database was also established [28,29]. Based on the measurement of value-added trade, in two separate studies, Bart Los and his colleagues [30,31] used the world input-output model to measure the degree of fragmentation of international trade, based on the measurement of domestic and foreign value-added systems and assessed the changes in European competitiveness. ...
Article
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In the face of the anti-globalization trend and the shrinking of the global value chain, ensuring the safety of the global layout of the industrial chain and the sustainability of each country’s internal intermediate product production cycle has become an important new development strategy for all countries. The sustainability of the internal and external cycles of production systems is closely related to global value chains. Based on the world input-output model, we define the trade pattern of intermediate goods in various countries from the perspective of trade intermediary attributes, and propose two indicators by which to measure the dependence of China on the global value chain in the process of “dual circulation” development: the degree of vertical specialization (VSD) and the import share of domestic total consumption (IMS); China’s super-large market leads to low values of both VSD and IMS. China’s high-tech industry has the highest degree of external dependence in the process of participating in dual circulation, and there has been a fluctuation cycle since 2009. The external dependence of different industries shows heterogeneity.
... While uncertainties across different expenditure microdata are under-explored in the consumption-based accounting literature, methodological limitations, as well as uncertainties from input-output data are well-documented. Different input-output databases can vary drastically with regards to sector aggregation, availability of time series data, and inclusion of uncertainty estimates (Hoekstra, 2010;Owen, 2017;Tukker & Dietzenbacher, 2013), causing them to have different strengths and weaknesses. Moreover, consumption-based inventories carry higher levels of uncertainty than production-based accounts, as these are in closer proximity to statistical sources (Peters, 2008). ...
Article
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To estimate household emissions from a consumption-perspective, national accounts are typically disaggregated to a sub-national level using household expenditure data. While limitations around using expenditure data are frequently discussed, differences in emission estimates generated from seemingly comparable expenditure microdata are not well-known. We compare UK neighbourhood greenhouse gas emission estimates derived from three such microdatasets: the Output Area Classification, the Living Costs and Food Survey, and a dataset produced by the credit reference agency TransUnion. Findings indicate moderate similarity between emission estimates from all datasets, even at detailed product and spatial levels; importantly, similarity increases for higher-emission products. Nevertheless, levels of similarity vary by products and geographies, highlighting the impact microdata selection can have on emission estimates. We focus our discussion on how uncertainty from microdata selection can be reduced in other UK and international contexts by selecting data based on the data generation process, the level of disaggregation needed, physical unit availability and research implications.
... There are numerous descriptions of this method and its constituents in the literature , so we will offer here a complete but brief explanation of our approach. The interested reader is referred to seminal work on multi-region input-output (MRIO) analysis (Isard, 1951;Leontief, 1953;Leontief and Strout, 1963); on the foundations of environmentally-extended IO analysis (Forssell, 1998;Leontief and Ford, 1970); and on modern MRIO frameworks (Tukker and Dietzenbacher, 2013). IO data are derived from the full version of the Eora MRIO database (Lenzen et al., 2012;Lenzen et al., 2013) covering the global economy. ...
Article
Over a million plastic bottles are bought around the world every minute, 20,000 every second. While there is agreement that single-use plastics should be phased out, records of plastic pollution point in the opposite direction. Until the phasing-out of single-use plastics materialises, there is an immediate opportunity to mitigate the environmental impacts of plastic use through better design, that is to improve material efficiency without affecting function or performance. In this article, we focus on a standard plastic milk bottle, which we redesign based on a previously developed shape factor for the sustainability of forms, achieving a ~13% material reduction. Environmental benefits are evaluated globally through hybrid life-cycle assessment (LCA) both in the 10 countries in which the original plastic bottle is used and the other 22 countries upstream in the supply chain. Results obtained through hybrid LCA are 17.3% higher than those obtained through process-based LCA. Environmental benefits arising in the 22 countries in the upstream supply chain are twice as much as those observed in the 10 countries where the original bottle is used. Overall, our findings show a potential annual reduction of ~1.9 Mt CO2e, equivalent to approximately 415,000 cars taken off the road, thus proving the substantial and viable benefits that can be achieved by material efficiency through redesign.
... In recent years, the increase in data availability and the support of different institutions (e.g. OECD, European Commission), has favoured the development of global MRIO tables (Tukker and Dietzenbacher, 2013;Stadler et al., 2016;Lenzen et al., 2013;OECD, 2018;Dietzenbacher et al., 2013;Eurostat, 2016). These tables use information from bilateral trade statistics to link national I-O tables of countries and, consequently, provide a more comprehensive vision of the flows of goods services in a globalized world. ...
Article
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In a tele-coupled and globalized World, understanding the links between demand for wood products and land use is becoming challenging. World's economies are increasingly open and interconnected, and international trade flows of wood products are continuously growing. The increasing resource consumption of humanity is increasingly dependent on international trade. In this context, the study of forest products demand from a global-multi-regional perspective emerges as a critical issue to achieve the goal of sustainable consumption and production. In this paper, we introduce a novel accounting framework for assessing the forest footprint of nations. The method combines Multi-regional Input-Output techniques and detailed data from the Food and Agriculture Organization of the United Nations on production, consumption and bilateral trade of primary, intermediate and final wood products, advancing with respect to existing approaches with these practical distinctions for more accurate computations. The approach tracks resource flows along the global supply chain and provides detailed information on the production, transformation, international trade, and final use of 20 forest products in 223 countries, having also much wider coverage than most previous studies. We test this framework to analyse forest footprint of nations in the year 2014, showing that 22 Million hectares (Mha) of forest were harvested for the extraction of roundwood for global demand, being 9.1 Mha to satisfy the foreign demand of wood products (42% of the total forestland harvested area). Harvested forestland is concentrated in America (32%), Asia (29%) and Europe (28%), representing Africa (7%) and Oceania (4%). More than 50% of the reported forest area harvested worldwide is located in USA (15%), China (14%); Russia (11%) and Canada (8%). In terms of forest footprint, Asia shows the highest share of the total forest footprint (44%), followed by America (25%), Europe (21%), Africa (7%) and Oceania (2%). Country-wise, half is concentrated in China (24%), USA (16%), India (5%), and Russia (5%).
... The paper focuses on 14 aggregated manufacturing industries. 2 This section explains the construction of variables used for testing the pollution haven effect in global value chains. Feenstra and Hanson (1996;1999) The recent development of inter-country input-output tables (ICIO) significantly improved the empirical research of global value chains (Tukker and Dietzenbacher 2013;Inomata 2014). Most importantly, ICIO allows researchers to track the value-added flow from where it is created to where it is absorbed in the final demand (Johnson and Noguera 2012;. ...
Preprint
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Statements and Declarations Competing Interests and Funding: I declare no competing interest. I did not receive funding for this research. Data availability: data and programs for this research are available at https://www.openicpsr.org/openicpsr/project/1 54181. 2 The impact of environmental regulations on manufacturing outsourcing: reexamining the pollution haven effect in global value chains Abstract As countries worldwide attempt to address a series of global and domestic environmental challenges, the pollution haven effect remains an ongoing concern among trade and environment researchers and policymakers. This paper examines the pollution haven effect in the context of global value chains using inter-country input-output data at the manufacturing industry level from 1995-2009. This paper pays special attention to the issue of "double-counting" caused by intermediate trade. The analysis utilizes two outsourcing measures and two revealed comparative advantage measures appropriate for analyzing global value chains. I propose women's political power as a novel instrumental variable to address the endogeneity of environmental regulation. Regression results show that more stringent environmental policies are not a significant determinant of manufacturing outsourcing and competitiveness in global value chains. At the same time, women's political power is associated with more stringent environmental policies.
Preprint
A multi-regional input-output table (MRIOT) containing the transactions among the region-sectors in an economy defines a weighted and directed network. Using network analysis tools, we analyze the regional and sectoral structure of the Chinese economy and their temporal dynamics from 2007 to 2012 via the MRIOTs of China. Global analyses are done with network topology measures. Growth-driving province-sector clusters are identified with community detection methods. Influential province-sectors are ranked by weighted PageRank scores. The results revealed a few interesting and telling insights. The level of inter-province-sector activities increased with the rapid growth of the national economy, but not as fast as that of intra-province economic activities. Regional community structures were deeply associated with geographical factors. The community heterogeneity across the regions was high and the regional fragmentation increased during the study period. Quantified metrics assessing the relative importance of the province-sectors in the national economy echo the national and regional economic development policies to a certain extent.
Chapter
Emerged as a key technique in modern sociology, Social Network Analysis (SNA) helps investigate the topological structure of various complex systems related to human society [1]. In a lot of studies, Structural Holes Theory spans the fields of sociology, economics, and computer science. Burt introduced this concept in an attempt to explain the origin of differences in social capital, and found that positional advantage or disadvantage of individuals results from how they are embedded in neighborhoods [2]. For instance, individuals located on important transmission paths serve as brokers receiving non-redundant information from their contacts. In this way, they are granted with information superiority and possess advantages on top of gaining intermediate interests by connecting the other nodes.As an important issue in the field of economics, industrial globalization can be treated as the aggregation of numerous IVCs into a GVC network, in which there are various trade types for each upstream or downstream sector due to the existence of geographical location and tariff barrier, etc. Any sector may play different roles on different IVCs at the same time. Therefore, in order to find the micro-level explanation of structural holes in the ICIO network, we will revisit the trade roles of industrial sectors from the perspective of econophysics by redefining the industrial sectors’ function while linkage exists between their upstream providers and downstream consumers, as well as, by quantifying the ratio of each type of brokerage roles in this process [3].
Article
The economic role of the construction industries has changed across countries in the past decades with rapid economic growth. This research investigates the economic role of multinational construction industries covering 41 countries and regions over 2000–2014 through measuring their overall economic performance and their linkage performance. The efficiency indicators are innovatively measured and ranked by combining the super-efficiency data envelopment analysis (DEA) model with the World Input-Output database. The results demonstrate that the construction industries play an important role in promoting national economic development and enhancing pull effect efficiencies, particularly in less advanced economies. The impact of the construction industries in advanced economies relates mainly to push effect production efficiencies. The research results can assist policymakers and businesses to formulate policies and strategies to ensure the construction industries continue to contribute to the growth and development of the economy. The research provides a feasible pathway towards applying DEA in a multi-regional input-output analysis.
Chapter
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.
Article
Chapter 4 deals with the construction of input–output tables from standardized conventions of national economic accounts, such as the widely used System of National Accounts (SNA) promoted by the United Nations, including a basic introduction to the so-called commodity-by-industry or supply-use input–output framework developed in additional detail in Chapter 5. A simplified SNA is derived from fundamental economic concepts of the circular flow of income and expenditure, that is, as additional sectoral details are defined for businesses, households, government, foreign trade, and capital formation, ultimately result in the basic commodity-by-industry formulation of input–output accounts. The process is illustrated with the US input–output model and some of the key traditional conventions widely applied for such considerations as secondary production (multiple products or commodities produced by a business), competitive imports (commodities that are also produced domestically) versus non-competitive imports (commodities not produced domestically), trade and transportation margins on interindustry transactions, or the treatment of scrap and secondhand goods.
Article
Chapter 13 reviews the extensions of the input–output framework to incorporate activities of environmental pollution and elimination associated with economic activities as well as the linkages of input–output to models of ecosystems. The chapter begins with the augmented Leontief model for incorporating pollution generation and elimination, from which many subsequent approaches have been developed. The chapter then describes the now widespread application of input–output analysis to environmental lifecycle assessment and establishing a “pollution footprint” for industrial activity. Environmental input–output is also now widely used to evaluate global environmental issues. The special case of analyzing the relationship between global climate change and industrial activity with a carbon footprint is then explored along with using input–output to attribute pollution generation to the demands driving consumption compared with the more traditional attribution of pollution generation to the sectors of industrial production necessary to meet that demand.
Article
Chapter 10 surveys a range of partial survey and non-survey estimation approaches for creating input–output tables at the regional level. Variants of the commonly used class of estimating procedures using location quotients are reviewed; these presume a regional estimate of input–output data can be derived using some information about a target region. Cross-hauling is discussed and approaches to address it are presented. The RAS technique developed in Chapter 9 is applied using a base national table or a table for another region and some available data for the target region. Techniques for partial survey estimation of commodity flows between regions are also presented along with discussions of several real-world multinational applications, including the China–Japan Transnational Interregional Model and Leontief’s World Model.
Technical Report
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Voetafdrukindicatoren geven inzicht in de impacts van consumptie en productie op milieu en natuur. In het rapport ‘Trends in Nederlandse voetafdrukken’ uit 2015 is dat al uitgebreid beschreven. Voor een aantal recente PBL-publicaties, te weten de Integrale Circulaire Economie Rapportage 2021, de Klimaat- en Energieverkenning 2020 en het rapport ‘Halveren van de Nederlandse voetafdruk’, zijn drie veel gebruikte voetafdrukindicatoren geactualiseerd voor de periode 2005-2015. Dit rapport beschrijft het model, de gebruikte database en de uitkomsten van de nieuwe berekeningen en dient daarmee als verantwoording voor de voetafdrukcijfers in de genoemde publicaties.
Article
We construct new interregional input–output tables for China, which can be used to analyze changes in the interindustry linkages within and between eight Chinese regions, and their consequences. We claim that analyses based on these tables yield more accurate results than analyses using existing interregional input–output tables for China, because our tables explicitly account for a typical feature of the Chinse economy: the importance of processing exports activities. These activities rely heavily on imported inputs and much less on inputs sourced from domestic regions. Accounting for such differences between processing exports and other production activities reduces aggregation biases. We illustrate the usefulness of the tables by computing supply chain fragmentation indices for China and quantifying the biases that are avoided by using our input–output tables instead of conventional ones. We make our tables (for 2002, 2007 and 2012) publicly available.
Article
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A social science perspective to carbon accounting is essential for determining the appropriate allocation of reduction responsibility, and thus contributing to addressing the climate crisis. It is crucial to have a comprehensive review of the literature in this field to better understand how relevant research has evolved, and to identify gaps that future studies need to work on. Based on the bibliographic database from the Web of Science (WOS), we identified 897 publications relevant to carbon accounting in the social sciences published between 1997 and 2020. Bibliometric analysis is applied to analyze the trends and features of carbon accounting research in the social sciences. The results show that international trade has spurred considerable scholarly interest in responsibility allocation from a consumption perspective. IO (input–output) analysis that can be used to derive embodied emissions in trade has therefore become the most popular method in this domain. It is also revealed that few publications have addressed quantification of emissions at organizational level. In consideration of the importance of organizations especially corporations in emission reduction, a shift of priority to this particular area is needed for further research. Carbon label and supply chain have emerged as a subject in keywords analysis, but have not been addressed enough either. To achieve carbon neutrality, solely relying on actions at country and organizational level may not be sufficient. Greener consumption behaviors of the public and individuals could play a remarkable role. Thus, it is important to formulate a consistent framework for labeling carbon embodied in products and investigate the drivers of consumers’ low-carbon choices.
Preprint
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The 2030 Agenda for Sustainable Development pursues 17 sustainable development goals (SDGs), the achievement of which may be influenced by a country’s role in global supply chains and position in international trade patterns. Global trade changes constantly with an increasing share of flows between developing countries. However, little is known about the impacts of change in trade on multi-dimensions of sustainable development at both global and country levels. Here we assess how structural change in trade during three time periods, between 2004 and 2014, impact 13 SDG indicators in 141 countries or regions. We find that socio-economic indicators (e.g., high- and medium-skilled labor, GDP) are less sensitive to change in trade, compared with resource and environmental indicators (e.g., water consumption, GHG emissions). Moreover, change in trade aggravated inequality among countries. The number of indicators that significantly worsened by change in trade decreased from eight indicators (2004–2007) to one (2011–2014) for high-income and upper-middle-income countries, but increased from five to fourteen for lower-middle-income and low-income countries. Furthermore, change in trade led to a coupling of value added with most resource and environmental indicators for low-income countries, while strengthening decoupling or reducing coupling for other countries.
Article
This paper provides detailed evidence on the extent of outsourcing and offshoring of manufacturing employment and value added using a regional subsystem input–output framework. The paper argues that direct employment and the value-added shares of manufacturing in the totals underestimate manufacturing’s importance. Jobs in manufacturing subsystems accounted for more than 25% of total worldwide employment, in contrast to just 15% recorded in direct statistics. In major developed countries, the level of intersectoral outsourcing reached its upper limit at the beginning of the new millennium. At the same time, the offshoring of activities interlinked with manufacturing has become the dominant driver of deindustrialisation in these countries. While direct manufacturing employment and intersectoral outsourcing declined between 2000 and 2014, offshoring experienced a significant increase of 6.5 percentage points, from 29% to 35.5% of the total employment generated under the G7 manufacturing subsystem. Furthermore, 84% of the value added that existed to meet the final demand for manufactured products in G7 countries remained in G7 countries, while most of the jobs needed to meet G7 final demand have been offshored to developing countries. The paper concludes that the importance of manufacturing subsystems for the world economy did not decline over 2000–14, but there was a significant shift of manufacturing activities and related services from G7 countries to China and other rapidly growing economies.
Article
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Understanding the consumption-based accounting (CBA), production-based accounting (PBA) and emissions embodied in trade is an important prerequisite for designing climate mitigation policies. Environmentally-Extended Input-Output (EEIO) models have been developed to evaluate the linkages between economic activities and environmental impacts as well as the embodied emissions in goods and services that are traded between countries. In this study, an Environmentally-Extended Global Multiregional Input-Output (EE GMRIO) analysis is performed to calculate Turkey’s CBA emissions and import-based embodied emissions for the year 2015 using the Eora26 database, which is a simplified version of the Eora database adapted to 26 economic sectors. The key sectors and sectoral carbon intensities of countries are determined in terms of embodied emissions in imports for household consumption. Our results indicate that Turkey was a net importer of Greenhouse Gas (GHG) emissions in 2015 and about 10% of total emissions of the final consumption in Turkey have occurred in other countries. The dominant contributing sectors to a nation’s GHG emissions can be quite different for the CBA and PBA approaches and the efforts to reduce GHG emissions requires a holistic approach. Türkiye’nin ithalatta gömülü GHG emisyonları detaylı incelenerek, hanehalkı tüketiminde oluşan ithalat temelli emisyonların ülke, sektör ve yoğunluk açısından değerlendirilmesi yapılmıştır. Our results indicate that Turkey was a net importer of GHG emissions in 2015 and about 10% of total and 7.7% of household final consumption emissions of Turkey have occurred in other countries. Sonuçlar, ithalatın önemli bir kısmının emisyon yoğunluğu düşük gelişmiş ülkelerden yapılması sebebiyle Türkiye’nin hanehalkı tüketimi için ithal ettiği malların nispeten düşük emisyon yoğunluğuna sahip olduğunu göstermektedir. Considering Turkey’s emissions reduction targets, these results provide methodological benefits that will enhance national efforts by giving invaluable inputs about the emission intensity of imported and exported goods and better guidance to policy makers about future strategies for low-carbon manufacturing and shifting consumption patterns.
Article
A multi-regional input–output table (MRIOT) containing the transactions among the region-sectors in an economy defines a weighted and directed network. Using network analysis tools, we analyze the regional and sectoral structure of the Chinese economy with the province-sector MRIOTs of China in 2007 and 2012. Global analyses are done with network topology measures. Growth-driving province-sector clusters are identified with community detection methods. Influential province-sectors are ranked by weighted PageRank scores. The results have revealed a few interesting and telling insights. The level of inter-province activities increased with the rapid growth of the national economy, but not as fast as that of intra-province economic activities. Regional community structures were deeply associated with geographical factors. The community heterogeneity across the regions was high and the regional fragmentation increased during the study period. Quantified metrics assessing the relative importance of the province-sectors in the national economy echo the national and regional economic development policies to a certain extent.
Conference Paper
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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.
Article
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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.
Article
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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.
Article
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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.
Data
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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.
Article
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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.
Article
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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.
Article
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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.
Article
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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.
Article
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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.
Article
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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.
Article
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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.
Article
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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.
Article
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.
Article
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.
Article
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.
Article
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.
Article
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).
Article
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.
Article
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.
Article
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.
Article
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.
Article
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.
Article
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.
Article
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.
Article
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.
Article
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."
Article
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.
Article
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.
Article
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.