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The CO2 'trade balance' between Scotland and the rest of the UK: Performing a multi-region environmental input-output analysis with limited data

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  • McGregor, Peter G.
  • Swales, J. Kim
  • Turner, Karen

Abstract

In this paper we attempt an empirical application of the multi-region input-output (MRIO) method proposed by Turner, Lenzen, Wiedmann and Barrett [Turner, K., Lenzen, M., Wiedmann, T., Barrett, J., 2007. Examining the global environmental impact of regional consumption activities -- part 1: a technical note on combining input-output and ecological footprint analysis. Ecological Economics 62 (1), 37-44] in a recent issue of this journal in order to enumerate the CO2 pollution content of interregional trade flows between Scotland and the rest of the UK (RUK). We extend the analysis to account for direct emissions generation by households, as final consumers, and to a social accounting matrix (SAM), where a more comprehensive account of incomes and expenditures is possible. While the existence of significant data problems mean that the quantitative results of this study should be regarded as provisional, the interregional economy-environment IO and SAM framework for Scotland and RUK allows an illustrative analysis of some very important issues in terms of the nature and significance of interregional environmental spillovers within the UK and the existence of a CO2 'trade balance' between Scotland and RUK.

Suggested Citation

  • McGregor, Peter G. & Swales, J. Kim & Turner, Karen, 2008. "The CO2 'trade balance' between Scotland and the rest of the UK: Performing a multi-region environmental input-output analysis with limited data," Ecological Economics, Elsevier, vol. 66(4), pages 662-673, July.
  • Handle: RePEc:eee:ecolec:v:66:y:2008:i:4:p:662-673
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    References listed on IDEAS

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    1. Turner, Karen & Lenzen, Manfred & Wiedmann, Thomas & Barrett, John, 2007. "Examining the global environmental impact of regional consumption activities -- Part 1: A technical note on combining input-output and ecological footprint analysis," Ecological Economics, Elsevier, vol. 62(1), pages 37-44, April.
    2. Rutger Hoekstra & Marco Janssen, 2006. "Environmental responsibility and policy in a two-country dynamic input-output model," Economic Systems Research, Taylor & Francis Journals, vol. 18(1), pages 61-84.
    3. Ferng, Jiun-Jiun, 2003. "Allocating the responsibility of CO2 over-emissions from the perspectives of benefit principle and ecological deficit," Ecological Economics, Elsevier, vol. 46(1), pages 121-141, August.
    4. Karen Turner, 2006. "Additional precision provided by region-specific data: The identification of fuel-use and pollution-generation coefficients in the Jersey economy," Regional Studies, Taylor & Francis Journals, vol. 40(4), pages 347-364.
    5. Manfred Lenzen & Lise-Lotte Pade & Jesper Munksgaard, 2004. "CO2 Multipliers in Multi-region Input-Output Models," Economic Systems Research, Taylor & Francis Journals, vol. 16(4), pages 391-412.
    6. 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.
    7. Bastianoni, Simone & Pulselli, Federico Maria & Tiezzi, Enzo, 2004. "The problem of assigning responsibility for greenhouse gas emissions," Ecological Economics, Elsevier, vol. 49(3), pages 253-257, July.
    8. Wyckoff, Andrew W. & Roop, Joseph M., 1994. "The embodiment of carbon in imports of manufactured products : Implications for international agreements on greenhouse gas emissions," Energy Policy, Elsevier, vol. 22(3), pages 187-194, March.
    9. Peter Mcgregor & Kim Swales, 2005. "Economics of devolution/decentralization in the UK: Some questions and answers," Regional Studies, Taylor & Francis Journals, vol. 39(4), pages 477-494.
    10. Kondo, Y. & Moriguchi, Y. & Shimizu, H., 1998. "CO2 Emissions in Japan: Influences of imports and exports," Applied Energy, Elsevier, vol. 59(2-3), pages 163-174, February.
    11. Sanchez-Choliz, Julio & Duarte, Rosa, 2004. "CO2 emissions embodied in international trade: evidence for Spain," Energy Policy, Elsevier, vol. 32(18), pages 1999-2005, December.
    12. Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-271, August.
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