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Sensitivity And Uncertainty Analysis In Mrio Modelling; Some Empirical Results With Regard To The Dutch Carbon Footprint

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  • Harry C. Wilting

Abstract

Environmental multi-regional input--output (MRIO) models require large amounts of data that all have their specific uncertainties. This paper presents a sensitivity and uncertainty analysis in order to gain an understanding of the directions in which efforts should be made to reduce these uncertainties. The analyses were carried out for an MRIO model to calculate the Dutch carbon footprint. A sensitivity analysis of the technical coefficients showed that changes in the coefficients in the domestic blocks and in the Dutch import blocks had the largest effects on the calculated footprint. The uncertainty analysis consisting of a Monte Carlo simulation based on probability distributions around the model coefficients showed a relatively low degree of uncertainty in the total Dutch carbon footprint; uncertainties in the carbon emissions allocated to regions, sectors and products were larger. Both analyses showed that, in certain cases, it is justified to apply a partial MRIO analysis.

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  • Harry C. Wilting, 2012. "Sensitivity And Uncertainty Analysis In Mrio Modelling; Some Empirical Results With Regard To The Dutch Carbon Footprint," Economic Systems Research, Taylor & Francis Journals, vol. 24(2), pages 141-171, September.
  • Handle: RePEc:taf:ecsysr:v:24:y:2012:i:2:p:141-171 DOI: 10.1080/09535314.2011.628302
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    Cited by:

    1. Mattila, Tuomas & Koskela, Sirkka & Seppälä, Jyri & Mäenpää, Ilmo, 2013. "Sensitivity analysis of environmentally extended input–output models as a tool for building scenarios of sustainable development," Ecological Economics, Elsevier, vol. 86(C), pages 148-155.
    2. Daniel Moran & Richard Wood, 2014. "Convergence Between The Eora, Wiod, Exiobase, And Openeu'S Consumption-Based Carbon Accounts," Economic Systems Research, Taylor & Francis Journals, pages 245-261.
    3. de Koning, Arjan & Bruckner, Martin & Lutter, Stephan & Wood, Richard & Stadler, Konstantin & Tukker, Arnold, 2015. "Effect of aggregation and disaggregation on embodied material use of products in input–output analysis," Ecological Economics, Elsevier, vol. 116(C), pages 289-299.
    4. Jonas Karstensen & Glen Peters & Robbie Andrew, 2015. "Allocation of global temperature change to consumers," Climatic Change, Springer, vol. 129(1), pages 43-55, March.
    5. Umed Temurshoev, 2015. "Uncertainty treatment in input-output analysis," Working Papers 2015-004, Universidad Loyola Andalucía, Department of Economics.
    6. Caggiani, Leonardo & Ottomanelli, Michele & Dell’Orco, Mauro, 2014. "Handling uncertainty in Multi Regional Input-Output models by entropy maximization and fuzzy programming," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 71(C), pages 159-172.

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