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Input-output analysis of CO2 emissions embodied in trade: The effects of spatial aggregation

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  • Su, Bin
  • Ang, B.W.

Abstract

Energy-related CO2 emissions embodied in international trade have been widely studied by researchers using the environmental input-output analysis framework. It is well known that both sector aggregation and spatial aggregation affect the results obtained in such studies. With regard to the latter, past studies are often conducted at the national level irrespective of country or economy size. For a large economy with the needed data, studies may be conducted at different levels of spatial aggregation. We examine this problem analytically by extending the work of Su et al. ([Su, B., Huang, H.C., Ang, B.W., Zhou, P., 2010. Input-output analysis of CO2 emissions embodied in trade: The effects of sector aggregation. Energy Economics 32 (1), 166-175.]) on sector aggregation. We present a numerical example using the data of China and by dividing the country into eight regions. It is found that the results are highly dependent on spatial aggregation. Our study shows that for a large country like China it is meaningful to look into the effect of spatial aggregation.

Suggested Citation

  • Su, Bin & Ang, B.W., 2010. "Input-output analysis of CO2 emissions embodied in trade: The effects of spatial aggregation," Ecological Economics, Elsevier, vol. 70(1), pages 10-18, November.
  • Handle: RePEc:eee:ecolec:v:70:y:2010:i:1:p:10-18
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    References listed on IDEAS

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    1. Su, Bin & Huang, H.C. & Ang, B.W. & Zhou, P., 2010. "Input-output analysis of CO2 emissions embodied in trade: The effects of sector aggregation," Energy Economics, Elsevier, vol. 32(1), pages 166-175, January.
    2. Jon R. Miller, 1998. "original: Spatial aggregation and regional economic forecasting," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 32(2), pages 253-266.
    3. Robbie Andrew & Glen Peters & James Lennox, 2009. "Approximation And Regional Aggregation In Multi-Regional Input-Output Analysis For National Carbon Footprint Accounting," Economic Systems Research, Taylor & Francis Journals, vol. 21(3), pages 311-335.
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    6. 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.
    7. 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.
    8. Nadim Ahmad & Andrew Wyckoff, 2003. "Carbon Dioxide Emissions Embodied in International Trade of Goods," OECD Science, Technology and Industry Working Papers 2003/15, OECD Publishing.
    9. 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.
    10. R E Miller & G Shao, 1990. "Spatial and sectoral aggregation in the commodity - industry multiregional input - output model," Environment and Planning A, Pion Ltd, London, vol. 22(12), pages 1637-1656, December.
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