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A two-stage econometric method for the estimation of carbon multipliers with rectangular supply and use tables

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  • Rodrigues, João F.D.
  • Rueda-Cantuche, José M.

Abstract

The Supply-Use Based Econometric (SUBE) approach was proposed to calculate stochastic input–output multipliers from rectangular supply-use tables under the product technology assumption. However, the resulting total use of direct requirements stimulated by final demand (be they carbon emissions, labor, etc.) may differ from the actual total use of direct requirements. To solve this problem, we propose in this paper a two-stage SUBE approach, which takes as prior the initially estimated SUBE multipliers and obtains a posterior set of two-stage SUBE multipliers by constrained least squares minimization. We illustrate the results with an empirical application for carbon emissions in the Portuguese economy in 2005.

Suggested Citation

  • Rodrigues, João F.D. & Rueda-Cantuche, José M., 2013. "A two-stage econometric method for the estimation of carbon multipliers with rectangular supply and use tables," Ecological Economics, Elsevier, vol. 95(C), pages 206-212.
  • Handle: RePEc:eee:ecolec:v:95:y:2013:i:c:p:206-212
    DOI: 10.1016/j.ecolecon.2013.09.001
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    References listed on IDEAS

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    1. Rueda-Cantuche, José M. & Amores, Antonio F., 2010. "Consistent and unbiased carbon dioxide emission multipliers: Performance of Danish emission reductions via external trade," Ecological Economics, Elsevier, vol. 69(5), pages 988-998, March.
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    7. Thijs ten Raa & José Manuel Rueda-Cantuche, 2009. "The Construction of Input–Output Coefficients Matrices in an Axiomatic Context: Some Further Considerations," World Scientific Book Chapters, in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 6, pages 77-101, World Scientific Publishing Co. Pte. Ltd..
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    10. José M. Rueda-Cantuche & Thijs ten Raa, 2021. "The Choice of Model in the Construction of Industry Coefficients Matrices," World Scientific Book Chapters, in: Efficiency and Input-Output Analyses Theory and Applications, chapter 16, pages 271-287, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Umed Temurshoev, 2015. "Uncertainty treatment in input-output analysis," Working Papers 2015-004, Universidad Loyola Andalucía, Department of Economics.

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