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How materials, energy, transport, and capital contribute to emissions along the supply chain of Material Handling Equipment: The Path Extraction Method applied to USEEIO

Author

Listed:
  • Hertwich, Edgar
  • Liu, Yiwen
  • Jiang, Meng

Abstract

The importance of machinery and equipment (ME) to the use of materials and thus to the circular economy and their contribution to climate change mitigation has only recently been recognized. Previous analyses based on EXIOBASE distinguished only five types of ME, giving a coarse picture that is not satisfactory to pinpoint opportunities for mitigation. Here we utilize the US benchmark input-output tables, which represent the production and use of 65 types of ME. We use Hypothetical Extraction Method (HEM) to identify the part of the carbon footprint that can be attributed to the input of materials and energy as well as the use of transport and capital equipment. We use Structural Path Analysis (SPA) to identify those suppliers important for contributing to the carbon footprint of the product of interest through using materials, energy, transport, capital, or direct emissions. We illustrate the application of this path extraction (PEX) to the greenhouse gas emissions (GHGE) of the production of material handling equipment. Cut-off criteria need to be set to less than 0.5% of total impacts to consider more than the first tear of suppliers to each of the investigated production processes.

Suggested Citation

  • Hertwich, Edgar & Liu, Yiwen & Jiang, Meng, 2026. "How materials, energy, transport, and capital contribute to emissions along the supply chain of Material Handling Equipment: The Path Extraction Method applied to USEEIO," MPRA Paper 129194, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:129194
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    References listed on IDEAS

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    1. repec:osf:socarx:n9ecw_v1 is not listed on IDEAS
    2. Defourny, Jacques & Thorbecke, Erik, 1984. "Structural Path Analysis and Multiplier Decomposition within a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 94(373), pages 111-136, March.
    3. Edgar G. Hertwich & Maximilian Koslowski & Kajwan Rasul, 2024. "Linking hypothetical extraction, the accumulation of production factors, and the addition of value," Journal of Industrial Ecology, Yale University, vol. 28(4), pages 736-750, August.
    4. repec:osf:osfxxx:meqhx_v1 is not listed on IDEAS
    5. Peter Berrill & T. Reed Miller & Yasushi Kondo & Edgar G. Hertwich, 2020. "Capital in the American carbon, energy, and material footprint," Journal of Industrial Ecology, Yale University, vol. 24(3), pages 589-600, June.
    6. Glen Peters & Edgar Hertwich, 2006. "Structural analysis of international trade: Environmental impacts of Norway," Economic Systems Research, Taylor & Francis Journals, vol. 18(2), pages 155-181.
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    Keywords

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    JEL classification:

    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L64 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Machinery; Business Equipment; Armaments
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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