Multi-region input–output analysis of CO2 emissions embodied in trade: The feedback effects
AbstractEnergy-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.
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Bibliographic InfoArticle provided by Elsevier in its journal Ecological Economics.
Volume (Year): 71 (2011)
Issue (Month): C ()
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Web page: http://www.elsevier.com/locate/ecolecon
Input–output analysis; Emissions embodied in trade; Consumption-based emissions; Feedback effects; Stepwise distribution analysis;
Find related papers by JEL classification:
- C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
- Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
- Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
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- Anderson, Blake & M'Gonigle, Michael, 2012. "Does ecological economics have a future?," Ecological Economics, Elsevier, vol. 84(C), pages 37-48.
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- Su, Bin & Ang, B.W., 2012. "Structural decomposition analysis applied to energy and emissions: Some methodological developments," Energy Economics, Elsevier, vol. 34(1), pages 177-188.
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