A Note on the Magnitude of the Feedback Effect in Environmentally Extended Multi‐Region Input‐Output Tables

8 Pages Posted: 5 Jun 2018

See all articles by Daniel D. Moran

Daniel D. Moran

Norwegian University of Science and Technology (NTNU)

Richard Wood

Norwegian University of Science and Technology (NTNU)

Joao Rodrigues

Leiden University

Date Written: June 2018

Abstract

Global multiregion input‐output (MRIO) tables have been developed to capture international spillover effects due to demand in one country and production in other countries. International spillovers have been growing and have become so dominant, especially in environmental analysis, that their inclusion is essential when analyzing impacts of consumption. MRIO tables give full coverage of the world economy, but do not always respect the official data of a given country. When international spillovers also cause increased production in the country of demand, we see what are known as “feedback effects.” As coupled models are being developed that make use of an official foreground national input‐output table (IOT) alongside an existing global MRIO, we are left in the situation where a coupled model does not use the official foreground information when modeling international feedback loops. The question thus arises: How large are these feedback loops for different environmental impacts? We look specifically at the amount of domestic production that is embodied in imports back into that region. We find that for emissions, the feedbacks are small, usually <2% of the total import footprint, though up to 6%+ for some countries in some years for some stressors. Our findings suggest that using Leontief multipliers from available MRIOs may be an acceptable method for modeling imports into national IOTs for environmentally extended MRIO analysis.

Keywords: environmental input‐output analysis, feedback effects, hybrid life cycle assessment, imports, industrial ecology, input‐output analysis (IOA)

Suggested Citation

Moran, Daniel D. and Wood, Richard and Rodrigues, Joao, A Note on the Magnitude of the Feedback Effect in Environmentally Extended Multi‐Region Input‐Output Tables (June 2018). Journal of Industrial Ecology, Vol. 22, Issue 3, pp. 532-539, 2018, Available at SSRN: https://ssrn.com/abstract=3189128 or http://dx.doi.org/10.1111/jiec.12658

Daniel D. Moran (Contact Author)

Norwegian University of Science and Technology (NTNU) ( email )

Høgskoleringen
Trondheim NO-7491, 7491
Norway

Richard Wood

Norwegian University of Science and Technology (NTNU) ( email )

Høgskoleringen
Trondheim NO-7491, 7491
Norway

Joao Rodrigues

Leiden University ( email )

Postbus 9500
Leiden, Zuid Holland 2300 RA
Netherlands

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