Alexandra Marques

21 Pages·2015·1.41 MB·English

by  Alexandra Marques

Understanding the impacts of consumption with
input-output analysis
Alexandra Marques
BiodiversityConservationGroup
GermanCentreforIntegrativeBiodiversityResearch(iDiv)Halle-Jena-Leipzig
[email protected]
TheImpactofConsumptiononEcosystemsandBiodiversityBeyondBorders
-ATEEBPerspective-
InternationalWorkshop,IsleofVilm,Germany
22nd October 2015
What is input-output analysis?
It is a quantitative economic technique, that provides a (static)
description of the interdependencies between the several economic actors.
It’s main goal was to understand how changes in final demand affect
the rest of the economy.
A.Marquesetal. 22nd October2015 2/21
The basic structure for input-output analysis
Intermediate Final Total
Exports
demand demand Output
z z z z y ex x
11 12 13 14 1 1 1
Intermediate z z z z y ex x
21 22 23 24 2 2 2
demand z z z z y ex x
31 32 33 34 3 3 3
z z z z y ex x
41 42 43 44 4 4 4
Imports im im im im
1 2 3 4
Value added v v v v
1 2 3 4
Total input x x x x
1 2 3 4
Table: Basic structure of an IO table with n sectors.
A.Marquesetal. 22nd October2015 3/21
The basic structure for input-output analysis
INTERMEDIATE
DEMAND
+ y = x
TABLE
Z
x = Z(cid:48)i+y
+

A = Zdiag(x)−1
v
= x = Ax+y

x x = (I−A)−1y
A.Marquesetal. 22nd October2015 4/21
An example
Final Total
Agriculture Industry Services
demand output
Agriculture 5 20 45 40 110
Industry 30 30 30 140 230
Services 5 80 20 65 170
Value
70 100 75
added
Total input 110 230 170
If the final demand for agriculture increases by 60AC, how does total output
increases?
A.Marquesetal. 22nd October2015 5/21
An example
Final Total
Agriculture Industry Services
demand output
Agriculture 8.12 22.10 48.46 100 178.68
Industry 48.73 33.16 32.30 140 254.19
Services 8.12 88.41 21.54 65 183.07
Value
70 100 75
added
Total input 178.68 254.19 183.07
x = 510 and x = 615.96
old new
x −x = 105.96
new old
A.Marquesetal. 22nd October2015 6/21
Environmentally extended input-output analysis (EEIO)
EEIO analysis is to calculate the embodied (indirect, hidden, upstream)
environmental impacts associated with a downstream consumption activity.
A.Marquesetal. 22nd October2015 7/21
Environmentally extended input-output analysis
Intermediate Final Total
Exports
demand demand Output
z z z z y ex x
11 12 13 14 1 1 1
Intermediate z z z z y ex x
21 22 23 24 2 2 2
demand z z z z y ex x
31 32 33 34 3 3 3
z z z z y ex x
41 42 43 44 4 4 4
Imports im im im im
1 2 3 4
Carbon c c c c
1 2 3 4
Biodiversity b b b b
1 2 3 4
Value added v v v v
1 2 3 4
Total input x x x x
1 2 3 4
Table: Basic structure of an IO table with n sectors.
A.Marquesetal. 22nd October2015 8/21
An example
Final
Agriculture Industry Services Total output
demand
Agriculture 5 20 45 40 110
Industry 30 30 30 140 230
Services 5 80 20 65 170
Inputs 70 100 75
Carbon 200 1000 50
Land 3000 10 0
Species
10 4 0
lost
Total input 110 230 170
What are the embodied carbon emissions of the final demand for agricultural
products?
How many ha of land are embodied in the consumption of industry sectors?
How many species are lost due to final demand of services?
A.Marquesetal. 22nd October2015 9/21
An example
Production of agriculture Consumption of products from
products agriculture
Carbon: 200 Carbon: 155.96
Land: 3000 Land: 1249.57
Species: 10 Species: 4.44
Production of industry Consumption of products from
products industry
Carbon: 1000 Carbon: 911.68
Land: 10 Land: 1053.44
Species: 4 Species: 6.76
A.Marquesetal. 22nd October2015 10/21