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Structural analysis of international trade: Environmental impacts of Norway

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Author Info

  • Glen Peters
  • Edgar Hertwich

Abstract

Final demand purchases initiate production processes that ultimately lead to environmental impacts. With the increase in international trade, many production processes occur outside of the country of final consumption. Whilst several studies have evaluated the pollution embodied in consumption and trade flows, few studies have investigated the structural linkages between domestic consumption and production in foreign regions. In this article we apply three complementary approaches to study the production network leading from the Norwegian economy to domestic and international environmental impacts: (1) the consumption perspective identifies final demand purchases that produce environmental impacts; (2) the production perspective identifies the production processes generating the pollution for a given demand; and (3) structural path analysis is used to provide the linkages between the global production networks linking consumption and production. We find that the three approaches provide different, but complementary information. For policy to focus on both sustainable consumption and production, all three approaches are required to fully identify environmentally important sectors in an economy.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economic Systems Research.

Volume (Year): 18 (2006)
Issue (Month): 2 ()
Pages: 155-181

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Handle: RePEc:taf:ecsysr:v:18:y:2006:i:2:p:155-181

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Related research

Keywords: Input-output analysis; embodied pollution; international trade; structural path analysis; sustainable consumption and production;

References

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Citations

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Cited by:
  1. Lin, Boqiang & Sun, Chuanwang, 2010. "Evaluating carbon dioxide emissions in international trade of China," Energy Policy, Elsevier, vol. 38(1), pages 613-621, January.
  2. Jordi Roca & Mònica Serrano, 2006. "Income growth and atmospheric pollution in Spain: an Input-Output approach," UHE Working papers 2006_04, Universitat Autònoma de Barcelona, Departament d'Economia i Història Econòmica, Unitat d'Història Econòmica.
  3. Tukker, Arnold & Poliakov, Evgueni & Heijungs, Reinout & Hawkins, Troy & Neuwahl, Frederik & Rueda-Cantuche, José M. & Giljum, Stefan & Moll, Stephan & Oosterhaven, Jan & Bouwmeester, Maaike, 2009. "Towards a global multi-regional environmentally extended input-output database," Ecological Economics, Elsevier, vol. 68(7), pages 1928-1937, May.
  4. Flores, Monica & Mainar, Alfredo J., 2010. "Análisis del impacto medioambiental derivado de las actividades económicas. Aplicación a una economía regional," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 10(2).
  5. Gemechu, Eskinder D. & Butnar, Isabela & Llop Llop, Maria & Sangwong, S. & Castells i Piqué, Francesc, 2013. "CO2 emissions embodied in international trade: A multiregional Inputoutput model for Spain," Working Papers 2072/212195, Universitat Rovira i Virgili, Department of Economics.
  6. Faye Duchin & Stephen H. Levine, 2010. "Embodied Resource Flows and Product Flows: Combining the Absorbing Markov Chain with the Input-Output Model," Rensselaer Working Papers in Economics 1002, Rensselaer Polytechnic Institute, Department of Economics.
  7. Wiedmann, Thomas & Lenzen, Manfred & Turner, Karen & Barrett, John, 2007. "Examining the global environmental impact of regional consumption activities -- Part 2: Review of input-output models for the assessment of environmental impacts embodied in trade," Ecological Economics, Elsevier, vol. 61(1), pages 15-26, February.
  8. Li, You & Hewitt, C.N., 2008. "The effect of trade between China and the UK on national and global carbon dioxide emissions," Energy Policy, Elsevier, vol. 36(6), pages 1907-1914, June.
  9. Wood, Richard & Lenzen, Manfred, 2009. "Structural path decomposition," Energy Economics, Elsevier, vol. 31(3), pages 335-341, May.
  10. Monica Flores-Garcia & Alfredo Mainar, 2009. "Environmental Effects of Production and Consumption Activities Within an Economy: the Aragon Case," International Advances in Economic Research, Springer, vol. 15(4), pages 437-455, November.
  11. Paul De Boer, 2008. "Additive Structural Decomposition Analysis and Index Number Theory: An Empirical Application of the Montgomery Decomposition," Economic Systems Research, Taylor & Francis Journals, vol. 20(1), pages 97-109.
  12. Cámara Sánchez , Ángeles & Flores García, Mónica & Fuentes Saguar, Patricia D., 2013. "Análisis de las emisiones asociadas al sector energético en España /Emissions Associated with the Energy Sector in Spain Using a Social Accounting Matrix and Environmental Accounts," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 31, pages 151-170, Enero.
  13. Moran, Daniel D. & Wackernagel, Mathis C. & Kitzes, Justin A. & Heumann, Benjamin W. & Phan, Doantam & Goldfinger, Steven H., 2009. "Trading spaces: Calculating embodied Ecological Footprints in international trade using a Product Land Use Matrix (PLUM)," Ecological Economics, Elsevier, vol. 68(7), pages 1938-1951, May.
  14. Wiedmann, Thomas, 2009. "A review of recent multi-region input-output models used for consumption-based emission and resource accounting," Ecological Economics, Elsevier, vol. 69(2), pages 211-222, December.
  15. Peters, Glen P., 2008. "From production-based to consumption-based national emission inventories," Ecological Economics, Elsevier, vol. 65(1), pages 13-23, March.

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