Endogenizing Capital in MRIO Models: The Implications for Consumption-Based Accounting

Environmental Science and Technology

Volumn 52, Issue 22, 2018, Pages 13250-13259

  Södersten, Carl Johan H ^a   Wood, Richard ^a   Hertwich, Edgar G ^b  

^a NORWEGIAN UNIVERSITY OF SCIENCE AND TECHNOLOGY   (Norway)

^b Yale University   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

COMMERCE; GAS EMISSIONS; GREENHOUSE GASES;

CAPITAL GOODS; CURRENT INPUT; CURRENT PATTERNS; EMISSION CALCULATION; GLOBAL EMISSIONS; INPUT-OUTPUT; PRODUCT CATEGORIES; PRODUCTION PROCESS;

CARBON FOOTPRINT;

CARBON EMISSION; CARBON FOOTPRINT; ENVIRONMENTAL ECONOMICS; GREENHOUSE GAS; INPUT-OUTPUT ANALYSIS; TRADE-ENVIRONMENT RELATIONS;

ARTICLE; CARBON FOOTPRINT; GREENHOUSE GAS; INDUSTRY;

CARBON FOOTPRINT; GREENHOUSE GASES; INDUSTRY;

EID: 85054348291     PISSN: 0013936X     EISSN: 15205851     Source Type: Journal    
DOI: 10.1021/acs.est.8b02791     Document Type: Article

References (57)

1. Hertwich, E. G. Life Cycle Approaches to Sustainable Consumption: A Critical Review. Environ. Sci. Technol. 2005, 39 (13), 4673-4684, 10.1021/es0497375
2. Peters, G. P. From production-based to consumption-based national emission inventories. Ecological Economics 2008, 65 (1), 13-23, 10.1016/j.ecolecon.2007.10.014
3. Minx, J. C.; Wiedmann, T.; Wood, R.; Peters, G. P.; Lenzen, M.; Owen, A.; Scott, K.; Barrett, J.; Hubacek, K.; Baiocchi, G.; Paul, A.; Dawkins, E.; Briggs, J.; Guan, D.; Suh, S.; Ackerman, F. Input-Output analysis and carbon footprinting: an overview of applications. Economic Systems Research 2009, 21 (3), 187-216, 10.1080/09535310903541298
4. Davis, S. J.; Caldeira, K. Consumption-based accounting of CO2 emissions. Proc. Natl. Acad. Sci. U. S. A. 2010, 107 (12), 5687-5692, 10.1073/pnas.0906974107
5. Stadler, K.; Wood, R.; Bulavskaya, T.; Södersten, C.-J.; Simas, M.; Schmidt, S.; Usubiaga, A.; Acosta-Fernández, J.; Kuenen, J.; Bruckner, M.; Giljum, S.; Lutter, S.; Merciai, S.; Schmidt, J. H.; Theurl, M. C.; Plutzar, C.; Kastner, T.; Eisenmenger, N.; Erb, K.-H.; de Koning, A.; Tukker, A. EXIOBASE 3: Developing a Time Series of Detailed Environmentally Extended Multi-Regional Input-Output Tables. J. Ind. Ecol. 2018, 22 (3), 502-515, 10.1111/jiec.12715
6. Timmer, M.; Erumban, A. A.; Gouma, R.; Los, B.; Temurshoev, U.; de Vries, G. J.; Arto, I. a.; Genty, V. A. A.; Neuwahl, F.; Francois, J. The World Input-Output Database (WIOD): Contents, Sources and Methods; Institue for International and Development Economics: 2012.
7. Lenzen, M.; Moran, D.; Kanemoto, K.; Geschke, A. Building EORA: a global multi-regional input-output database at high country and sector resolution. Economic Systems Research 2013, 25 (1), 20-49, 10.1080/09535314.2013.769938
8. Wiedmann, T. Editorial: Carbon footprint and input-output analysis-an introduction. Economic Systems Research 2009, 21 (3), 175-186, 10.1080/09535310903541256
9. Wiedmann, T.; Wilting, H. C.; Lenzen, M.; Lutter, S.; Palm, V. Quo Vadis MRIO? Methodological, data and institutional requirements for multi-region input-output analysis. Ecological Economics 2011, 70 (11), 1937-1945, 10.1016/j.ecolecon.2011.06.014
10. Södersten, C.-J.; Wood, R.; Hertwich, E. G. Environmental Impacts of Capital Formation. J. Ind. Ecol. 2018, 22 (1), 55-67, 10.1111/jiec.12532
11. Baccini, P.; Brunner, P. H. Metabolism of the Anthroposphere; Springer-Verlag: 1991.
12. Boulding, K. E. The economics of the coming spaceship earth. Environmental Quality Issues in a Growing Economy, 1966.
13. Kerkhof, A. C.; Nonhebel, S.; Moll, H. C. Relating the environmental impact of consumption to household expenditures: An input-output analysis. Ecological Economics 2009, 68 (4), 1160-1170, 10.1016/j.ecolecon.2008.08.004
14. Baiocchi, G.; Minx, J.; Hubacek, K. The impact of social factors and consumer behavior on carbon dioxide emissions in the United Kingdom: A regression based on input- output and geodemographic consumer segmentation data. J. Ind. Ecol. 2010, 14 (1), 50-72, 10.1111/j.1530-9290.2009.00216.x
15. Heinonen, J.; Jalas, M.; Juntunen, J. K.; Ala-Mantila, S.; Junnila, S. Situated lifestyles: I. How lifestyles change along with the level of urbanization and what the greenhouse gas implications are-a study of Finland. Environ. Res. Lett. 2013, 8 (2), 025003, 10.1088/1748-9326/8/2/025003
16. Ivanova, D.; Stadler, K.; Steen-Olsen, K.; Wood, R.; Vita, G.; Tukker, A.; Hertwich, E. G. Environmental impact assessment of household consumption. J. Ind. Ecol. 2016, 20 (3), 526-536, 10.1111/jiec.12371
17. Steen-Olsen, K.; Wood, R.; Hertwich, E. G. The carbon footprint of Norwegian household consumption 1999-2012. J. Ind. Ecol. 2016, 20 (3), 582-592, 10.1111/jiec.12405
18. Markaki, M.; Belegri-Roboli, A.; Sarafidis, Y; Mirasgedis, S. The carbon footprint of Greek households (1995-2012). Energy Policy 2017, 100, 206-215, 10.1016/j.enpol.2016.10.031
19. Ottelin, J.; Heinonen, J.; Junnila, S. Carbon and material footprints of a welfare state: Why and how governments should enhance green investments. Environ. Sci. Policy 2018, 86, 1-10, 10.1016/j.envsci.2018.04.011
20. Lenzen, M.; Treloar, G. J. Endogenising Capital. J. Appl. Input-Output Anal. 2004, 10, 1-11
21. Wiedmann, T.; Minx, J. A definition of 'carbon footprint'. Ecological economics research trends 2008, 1, 1-11
22. Yunfeng, Y.; Laike, Y. China's foreign trade and climate change: A case study of CO2 emissions. Energy Policy 2010, 38 (1), 350-356, 10.1016/j.enpol.2009.09.025
23. Xie, S.-C. The driving forces of China ′s energy use from 1992 to 2010: An empirical study of input-output and structural decomposition analysis. Energy Policy 2014, 73, 401-415, 10.1016/j.enpol.2014.05.035
24. Weber, C. L.; Peters, G. P.; Guan, D.; Hubacek, K. The contribution of Chinese exports to climate change. Energy Policy 2008, 36 (9), 3572-3577, 10.1016/j.enpol.2008.06.009
25. Shui, B.; Harriss, R. C. The role of CO2 embodiment in US-China trade. Energy Policy 2006, 34 (18), 4063-4068, 10.1016/j.enpol.2005.09.010
26. Minx, J. C.; Baiocchi, G.; Peters, G. P.; Weber, C. L.; Guan, D.; Hubacek, K. A "carbonizing dragon": China's fast growing CO2 emissions revisited. Environ. Sci. Technol. 2011, 45 (21), 9144-9153, 10.1021/es201497m
27. Guan, D.; Hubacek, K.; Weber, C. L.; Peters, G. P.; Reiner, D. M. The drivers of Chinese CO2 emissions from 1980 to 2030. Global Environmental Change 2008, 18 (4), 626-634, 10.1016/j.gloenvcha.2008.08.001
28. Bal, D. P.; Dash, D. P.; Subhasish, B. The Effects of Capital Formation on Economic Growth in India: Evidence from ARDL-bound Testing Approach. Global Business Review 2016, 17 (6), 1388-1400, 10.1177/0972150916660403
29. Solow, R. M. A Contribution to the Theory of Economic Growth. Quarterly Journal of Economics 1956, 70 (1), 65-94, 10.2307/1884513
30. Swan, T. W. ECONOMIC GROWTH and CAPITAL ACCUMULATION. Economic Record 1956, 32 (2), 334-361, 10.1111/j.1475-4932.1956.tb00434.x
31. Kaldor, N. Capital Accumulation and Economic Growth. In The Theory of Capital: Proceedings of a Conference held by the International Economic Association; Hague, D. C., Ed.; Palgrave Macmillan: London, 1961; pp 177-222.
32. De Long, J. B.; Summers, L. H. Equipment Investment and Economic Growth∗. Quarterly Journal of Economics 1991, 106 (2), 445-502, 10.2307/2937944
33. Eurostat. Eurostat Manual of Supply, Use and Input-Output Tables. Eurostat: Luxembourg, 2008.
34. Organisation for Economic Co-operation and Development (OECD); United Nations (UN) System of National Accounts 2008. European Commission, International Monetary Fund, Organisation for Economic Co-operation and Development, United Nations and World Bank: New York, 2009.
35. Schreyer, P. OECD Manual: Measuring Capital. Organisation for Economic Development and Cooperation; Paris, 2009.
36. Pauliuk, S.; Müller, D. B. The role of in-use stocks in the social metabolism and in climate change mitigation. Global Environmental Change 2014, 24, 132-142, 10.1016/j.gloenvcha.2013.11.006
37. Pauliuk, S.; Wood, R.; Hertwich, E. G. Dynamic Models of Fixed Capital Stocks and Their Application in Industrial Ecology. J. Ind. Ecol. 2015, 19 (1), 104-116, 10.1111/jiec.12149
38. Weisz, H.; Suh, S.; Graedel, T. E. Industrial Ecology: The role of manufactured capital in sustainability. Proc. Natl. Acad. Sci. U. S. A. 2015, 112 (20), 6260-6264, 10.1073/pnas.1506532112
39. Chen, W.-Q.; Graedel, T. E. In-use product stocks link manufactured capital to natural capital. Proc. Natl. Acad. Sci. U. S. A. 2015, 112 (20), 6265-6270, 10.1073/pnas.1406866112
40. Lenzen, M. A Generalized Input-Output Multiplier Calculus for Australia. Economic Systems Research 2001, 13 (1), 65-92, 10.1080/09535310120026256
41. Peters, G. P.; Hertwich, E. G. The Importance of Imports for Household Environmental Impacts. J. Ind. Ecol. 2006, 10 (3), 89-109, 10.1162/jiec.2006.10.3.89
42. Hertwich, E. G. The life cycle environmental impacts of consumption. Economic Systems Research 2011, 23 (1), 27-47, 10.1080/09535314.2010.536905
43. Nansai, K.; Inaba, R.; Kagawa, S.; Moriguchi, Y. Identifying common features among household consumption patterns optimized to minimize specific environmental burdens. J. Cleaner Prod. 2008, 16 (4), 538-548, 10.1016/j.jclepro.2007.01.008
44. EUKLEMS. EU KLEMS Growth and Productivity Accounts. http://www.euklems.net (accessed 14 August).
45. WORLDKLEMS. WORLD KLEMS initiative. http://www.worldklems.net/index.htm (accessed 4 August).
46. Matthews, H. D.; Zickfeld, K.; Knutti, R.; Allen, M. R. Focus on cumulative emissions, global carbon budgets and the implications for climate mitigation targets. Environ. Res. Lett. 2017, 13 (1), 010201, 10.1088/1748-9326/aa98c9
47. Peters, G. P.; Andrew, R. M.; Solomon, S.; Friedlingstein, P. Measuring a fair and ambitious climate agreement using cumulative emissions. Environ. Res. Lett. 2015, 10 (10), 105004, 10.1088/1748-9326/10/10/105004
48. Friedlingstein, P.; Andrew, R. M.; Rogelj, J.; Peters, G.; Canadell, J. G.; Knutti, R.; Luderer, G.; Raupach, M. R.; Schaeffer, M.; van Vuuren, D. P. Persistent growth of CO 2 emissions and implications for reaching climate targets. Nat. Geosci. 2014, 7 (10), 709, 10.1038/ngeo2248
49. Jorgenson, D. W. New methods for measuring capital. Canberra Group on Capital Stock Statistics; Washington DC, 1999, 8.
50. Oulton, N.; Srinivasan, S. Capital stocks, capital services, and depreciation: an integrated framework. SSRN J. 2003, 10.2139/ssrn.492062.
51. Schreyer, P., P. Bignon; Dupont, J. OECD Capital Services Estimates; OECD Publishing: 2003.
52. Ahmad, N. In Introducing Capital Services into the Production Account; Meeting of the Advisory Expert Group on National Accounts, December, 2004.
53. Diewert, W. E. Issues in the measurement of capital services, depreciation, asset price changes, and interest rates. In Measuring Capital in the New Economy; University of Chicago Press: 2005; pp 479-556.
54. van der Voet, E.; Kleijn, R.; Huele, R.; Ishikawa, M.; Verkuijlen, E. Predicting future emissions based on characteristics of stocks. Ecological Economics 2002, 41 (2), 223-234, 10.1016/S0921-8009(02)00028-9
55. Müller, D. B. Stock dynamics for forecasting material flows-Case study for housing in The Netherlands. Ecological Economics 2006, 59 (1), 142-156, 10.1016/j.ecolecon.2005.09.025
56. Müller, D. B.; Liu, G.; Løvik, A. N.; Modaresi, R.; Pauliuk, S.; Steinhoff, F. S.; Brattebø, H. Carbon emissions of infrastructure development. Environ. Sci. Technol. 2013, 47 (20), 11739-11746, 10.1021/es402618m
57. Duchin, F.; Szyld, D. B. A DYNAMIC INPUT-OUTPUT MODEL WITH ASSURED POSITIVE OUTPUT(∗). Metroeconomica 1985, 37 (3), 269-282, 10.1111/j.1467-999X.1985.tb00415.x