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A New Sut Consolidation Method Tested By A Decomposition Of Value Added And Co 2 Embodied In Eu27 Exports

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  • Maaike C. Bouwmeester
  • Jan Oosterhaven
  • Jos� M. Rueda-Cantuche

Abstract

This paper develops a method to consolidate national supply-use tables (SUTs) into a single supra-regional SUT. The method deals with mirror trade statistics problems, such as the different valuation of imports and exports, and it corrects for double-counting re-exports. The method is tested by means of a decomposition of value added and CO 2 emissions embodied in EU27 exports to third countries. When the national SUTs for the period 2000-2007 are used, neglecting intra-European Union spillover and feedback effects results in an underestimation of the embodied value added of 12-15%. Not consolidating the national tables properly leads to a further underestimation of 11-16%. With these underestimations removed, EU27 foreign exports still only explain around 11% of EU27 Gross Domestic Product, whereas they explain 17% of the EU27 CO 2 emissions. Hence, the income benefits of these exports are, in relative terms, considerably smaller than their CO 2 emission cost.

Suggested Citation

  • Maaike C. Bouwmeester & Jan Oosterhaven & Jos� M. Rueda-Cantuche, 2014. "A New Sut Consolidation Method Tested By A Decomposition Of Value Added And Co 2 Embodied In Eu27 Exports," Economic Systems Research, Taylor & Francis Journals, vol. 26(4), pages 511-541, December.
    • Handle: RePEc:taf:ecsysr:v:26:y:2014:i:4:p:511-541
    DOI: 10.1080/09535314.2014.892473
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    Cited by:

    1. Heun, Matthew Kuperus & Owen, Anne & Brockway, Paul E., 2018. "A physical supply-use table framework for energy analysis on the energy conversion chain," Applied Energy, Elsevier, vol. 226(C), pages 1134-1162.
    2. Muradov, Kirill, 2016. "Trade costs and borders in the world of global value chains," Conference papers 332697, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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