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Approximation And Regional Aggregation In Multi-Regional Input-Output Analysis For National Carbon Footprint Accounting

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Author Info

  • Robbie Andrew
  • Glen Peters
  • James Lennox

Abstract

Multi-regional input-output (MRIO) analysis has been widely used to quantify the global environmental impacts (e.g. energy use, greenhouse gas emissions, water use) embodied in consumption and international trade. Often, analysts have used approximations to a full global MRIO model; however, without access to a full MRIO model the approximation errors are unknown. In this paper we use an MRIO model based on the dataset provided by the Global Trade Analysis Project (GTAP) to quantify the errors introduced by various approximations of the full MRIO model. We find that emissions embodied in imports contribute an average 40% of the total emissions embodied in countries' final demands. For the emissions embodied in imports, we find: (a) that the unidirectional trade model gives a good approximation to the full MRIO model when the number of regions in the model is small; (b) that including only the most important trade partner in terms of emissions embodied in imports can substantially improve the accuracy of estimates; and (c) that a world-average input-output table often provides a good representation of the aggregate 'rest of world' economy. Finally, assuming that imports are produced with domestic technology (Domestic Technology Assumption, DTA) in an MRIO model can introduce significant errors and requires careful validation before results are used. However, the DTA generally produces better estimates than ignoring imports altogether.

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Bibliographic Info

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

Volume (Year): 21 (2009)
Issue (Month): 3 ()
Pages: 311-335

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Handle: RePEc:taf:ecsysr:v:21:y:2009:i:3:p:311-335

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Related research

Keywords: Input-output analysis; Carbon footprint; Approximation; Trade and environment;

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Citations

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Cited by:
  1. Maaike Bouwmeester & Jan Oosterhaven, 2013. "Specification and Aggregation Errors in Environmentally Extended Input–Output Models," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 56(3), pages 307-335, November.
  2. Su, Bin & Ang, B.W. & Low, Melissa, 2013. "Input–output analysis of CO2 emissions embodied in trade and the driving forces: Processing and normal exports," Ecological Economics, Elsevier, vol. 88(C), pages 119-125.
  3. Arndt, Channing & Makrelov, Konstantin & Thurlow, James, 2011. "Measuring the Carbon Content of the South African Economy," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  4. Youguo Zhang, 2012. "Scale, Technique and Composition Effects in Trade-Related Carbon Emissions in China," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 51(3), pages 371-389, March.
  5. Fujimori, Shinichiro & Matsuoka, Yuzuru, 2011. "Development of method for estimation of world industrial energy consumption and its application," Energy Economics, Elsevier, vol. 33(3), pages 461-473, May.
  6. Misato Sato, 2012. "Embodied carbon in trade: a survey of the empirical literature," Grantham Research Institute on Climate Change and the Environment Working Papers 77, Grantham Research Institute on Climate Change and the Environment.
  7. Zhang, Youguo, 2013. "The responsibility for carbon emissions and carbon efficiency at the sectoral level: Evidence from China," Energy Economics, Elsevier, vol. 40(C), pages 967-975.
  8. Giovanni Marin & Massimiliano Mazzanti & Anna Montini, 2011. "Linking NAMEA and Input output for 'consumption vs. production perspective' analyses," Openloc Working Papers 1109, Public policies and local development.
  9. López Santiago, Luís Antonio & Monsalve, Fabio & Zafrilla, Jorge Enrique, 2011. "Análisis Input-Output de la eficacia de la Política Europea de Desarrollo Rural 2007-2013. Propuesta metodológica y resultados para Castilla-La Mancha/The Effectiveness of European Rural Developmen," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 29, pages 223-246, Abril.
  10. Christoph Böhringer & Brita Bye & Taran Fæhn & Knut Einar Rosendahl, 2012. "Alternative Designs for Tariffs on Embodied Carbon: A Global Cost-Effectiveness Analysis," Working Papers V-345-12, University of Oldenburg, Department of Economics, revised Jun 2012.
  11. Qi, Tianyu & Winchester, Niven & Karplus, Valerie J. & Zhang, Xiliang, 2014. "Will economic restructuring in China reduce trade-embodied CO2 emissions?," Energy Economics, Elsevier, vol. 42(C), pages 204-212.
  12. repec:old:wpaper:345 is not listed on IDEAS
  13. Böhringer, Christoph & Bye, Brita & Fæhn, Taran & Rosendahl, Knut Einar, 2012. "Alternative designs for tariffs on embodied carbon: A global cost-effectiveness analysis," Energy Economics, Elsevier, vol. 34(S2), pages S143-S153.
  14. López, Luis Antonio & Arce, Guadalupe & Zafrilla, Jorge Enrique, 2013. "Parcelling virtual carbon in the pollution haven hypothesis," Energy Economics, Elsevier, vol. 39(C), pages 177-186.

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