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Accounting for value added embodied in trade and consumption: an intercomparison of global multiregional input--output databases

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  • Kjartan Steen-Olsen
  • Anne Owen
  • John Barrett
  • Dabo Guan
  • Edgar G. Hertwich
  • Manfred Lenzen
  • Thomas Wiedmann

Abstract

Global multiregional input--output (MRIO) tables constitute detailed accounts of the economic activity worldwide. Global trade models based on MRIO tables are being used to calculate important economic and environmental indicators such as value added in trade or the carbon footprint of nations. Such applications are highly relevant in international trade and climate policy negotiations, and consequently MRIO model results are being scrutinized for their accuracy and reproducibility. We investigate the variation in results from three major MRIO databases by comparing underlying economic data and territorial and consumption-based results across databases. Although global value-added accounts were similar across databases, we find some significant differences at the level of individual countries and sectors. Model disagreement was relatively stable from the territorial to the consumption perspective. Pairwise matrix comparison statistics indicated that the Global Trade Analysis Project and World Input-Output Database MRIO tables were overall more similar to each other than either was to the Eora database.

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  • Kjartan Steen-Olsen & Anne Owen & John Barrett & Dabo Guan & Edgar G. Hertwich & Manfred Lenzen & Thomas Wiedmann, 2016. "Accounting for value added embodied in trade and consumption: an intercomparison of global multiregional input--output databases," Economic Systems Research, Taylor & Francis Journals, vol. 28(1), pages 78-94, March.
    • Handle: RePEc:taf:ecsysr:v:28:y:2016:i:1:p:78-94
    DOI: 10.1080/09535314.2016.1141751
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    4. Jingwen Huo & Peipei Chen & Klaus Hubacek & Heran Zheng & Jing Meng & Dabo Guan, 2022. "Full‐scale, near real‐time multi‐regional input–output table for the global emerging economies (EMERGING)," Journal of Industrial Ecology, Yale University, vol. 26(4), pages 1218-1232, August.
    5. Huang, Rui & Chen, Guangwu & Lv, Guonian & Malik, Arunima & Shi, Xunpeng & Xie, Xiaotian, 2020. "The effect of technology spillover on CO2 emissions embodied in China-Australia trade," Energy Policy, Elsevier, vol. 144(C).
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    7. Araújo, Inácio Fernandes de & Perobelli, Fernando Salgueiro & Faria, Weslem Rodrigues, 2021. "Regional and global patterns of participation in value chains: Evidence from Brazil," International Economics, Elsevier, vol. 165(C), pages 154-171.
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