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Linking NAMEA and Input output for 'consumption vs. production perspective' analyses

Listed author(s):
  • Giovanni Marin
  • Massimiliano Mazzanti
  • Anna Montini

We integrate input output and NAMEA tables for Spain and Italy in 1995, 2000 and 2005, in order to address the hot policy issue of sustainable consumption and production. A comparison of a production and consumption perspective may have relevant policy implications. We deal with the domestic technology assumption and primarily the aggregation bias that may result when calculating indirect emission using different sector aggregation in the analyses (e.g. 16, 32, 50). Extended Input output analysis provides analyses of the emissions embodied in domestic consumption and domestic production by considering the structure of intermediate inputs and environmental efficiency in each production sector. Our empirical findings show that different sectoral aggregation significantly biases the amount of emissions both for the consumption and the production perspective, though differently in the two countries. Italy surprisingly show consumption/production ratios around or lower than one, but in line with some major work at EU level. Our results thus suggest that special attention must be paid when interpreting the EE-IOA of country estimated amounts of embodied emissions, both in domestic final demand and those directly associated with the production sectors when the sectoral aggregation level has a low definition as considered in some recent similar studies.

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Paper provided by Public policies and local development in its series Openloc Working Papers with number 1109.

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Date of creation: 2011
Handle: RePEc:trn:utwpol:1109
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  1. Turner, Karen & Lenzen, Manfred & Wiedmann, Thomas & Barrett, John, 2007. "Examining the global environmental impact of regional consumption activities -- Part 1: A technical note on combining input-output and ecological footprint analysis," Ecological Economics, Elsevier, vol. 62(1), pages 37-44, April.
  2. Mazzanti, Massimiliano & Montini, Anna, 2010. "Embedding the drivers of emission efficiency at regional level -- Analyses of NAMEA data," Ecological Economics, Elsevier, vol. 69(12), pages 2457-2467, October.
  3. Su, Bin & Huang, H.C. & Ang, B.W. & Zhou, P., 2010. "Input-output analysis of CO2 emissions embodied in trade: The effects of sector aggregation," Energy Economics, Elsevier, vol. 32(1), pages 166-175, January.
  4. Arik Levinson, 2010. "Offshoring Pollution: Is the United States Increasingly Importing Polluting Goods?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(1), pages 63-83, Winter.
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  7. Roca, Jordi & Serrano, Monica, 2007. "Income growth and atmospheric pollution in Spain: An input-output approach," Ecological Economics, Elsevier, vol. 63(1), pages 230-242, June.
  8. Robbie Andrew & Glen Peters & James Lennox, 2009. "Approximation And Regional Aggregation In Multi-Regional Input-Output Analysis For National Carbon Footprint Accounting," Economic Systems Research, Taylor & Francis Journals, vol. 21(3), pages 311-335.
  9. Yoshinori Morimoto, 1970. "On Aggregation Problems in Input-Output Analysis," Review of Economic Studies, Oxford University Press, vol. 37(1), pages 119-126.
  10. Jeffrey A. Frankel & Andrew K. Rose, 2005. "Is Trade Good or Bad for the Environment? Sorting Out the Causality," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 85-91, February.
  11. Wyckoff, Andrew W. & Roop, Joseph M., 1994. "The embodiment of carbon in imports of manufactured products : Implications for international agreements on greenhouse gas emissions," Energy Policy, Elsevier, vol. 22(3), pages 187-194, March.
  12. Cole, Matthew A., 2004. "Trade, the pollution haven hypothesis and the environmental Kuznets curve: examining the linkages," Ecological Economics, Elsevier, vol. 48(1), pages 71-81, January.
  13. de Haan, Mark & Keuning, Steven J, 1996. "Taking the Environment into Account: The NAMEA Approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(2), pages 131-148, June.
  14. Satoshi Nakano & Asako Okamura & Norihisa Sakurai & Masayuki Suzuki & Yoshiaki Tojo & Norihiko Yamano, 2009. "The Measurement of CO2 Embodiments in International Trade: Evidence from the Harmonised Input-Output and Bilateral Trade Database," OECD Science, Technology and Industry Working Papers 2009/3, OECD Publishing.
  15. Blanca Gallego & Manfred Lenzen, 2005. "A consistent input-output formulation of shared producer and consumer responsibility," Economic Systems Research, Taylor & Francis Journals, vol. 17(4), pages 365-391.
  16. Alcántara, Vicent & Padilla, Emilio, 2009. "Input-output subsystems and pollution: An application to the service sector and CO2 emissions in Spain," Ecological Economics, Elsevier, vol. 68(3), pages 905-914, January.
  17. Nadim Ahmad & Andrew Wyckoff, 2003. "Carbon Dioxide Emissions Embodied in International Trade of Goods," OECD Science, Technology and Industry Working Papers 2003/15, OECD Publishing.
  18. Manfred Lenzen, 2011. "Aggregation Versus Disaggregation In Input-Output Analysis Of The Environment," Economic Systems Research, Taylor & Francis Journals, vol. 23(1), pages 73-89.
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