Prioritizing Consumption‐Based Carbon Policy Based on the Evaluation of Mitigation Potential Using Input‐Output Methods

13 Pages Posted: 5 Jun 2018

See all articles by Richard Wood

Richard Wood

Norwegian University of Science and Technology (NTNU)

Daniel D. Moran

Norwegian University of Science and Technology (NTNU)

Konstantin Stadler

Norwegian University of Science and Technology (NTNU) - Department of Industrial Economics and Technology

Diana Ivanova

Norwegian University of Science and Technology (NTNU) - Industrial Ecology Programme

Kjartan Steen‐Olsen

Norwegian University of Science and Technology (NTNU) - Industrial Ecology Programme

Alexandre Tisserant

Norwegian University of Science and Technology (NTNU)

Edgar Hertwich

Norwegian University of Science and Technology (NTNU)

Date Written: June 2018

Abstract

Carbon footprints aim to engage consumers in contributing to climate‐change mitigation. Consumption‐oriented policy measures attempt to cause voluntary or incentivized interventions that reduce environmental impact through the supply chain by utilizing demand drivers. A large body of life cycle assessment studies describe how specific actions can reduce the environmental footprint of an individual or household. However, these assessments are often conducted with a narrow focus on particular goods and processes. Here, we formalize a counterfactual method and operational tool for scoping the potential impact of such actions, focusing on economy‐wide impact. This “quickscan” tool can model shifts and reductions in demand, rebound effects (using marginal expenditure), changes in domestic and international production recipes, and reductions in the environmental intensity of production. This tool provides quick, macro‐level estimates of the efficacy of consumer‐oriented policy measures and can help to prioritize relevant policies. We demonstrate the method using two case studies on diet and clothing using the EXIOBASE3 multiregional input‐output database, giving spatially explicit information on where environmental impact reductions of the interventions occur, and where impacts may increase in the case of rebounds.

Keywords: carbon footprints, climate policy, industrial ecology, input‐output analysis, life cycle assessment (LCA), rebound

Suggested Citation

Wood, Richard and Moran, Daniel D. and Stadler, Konstantin and Ivanova, Diana and Steen‐Olsen, Kjartan and Tisserant, Alexandre and Hertwich, Edgar, Prioritizing Consumption‐Based Carbon Policy Based on the Evaluation of Mitigation Potential Using Input‐Output Methods (June 2018). Journal of Industrial Ecology, Vol. 22, Issue 3, pp. 540-552, 2018. Available at SSRN: https://ssrn.com/abstract=3189135 or http://dx.doi.org/10.1111/jiec.12702

Richard Wood (Contact Author)

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

Høgskoleringen
Trondheim NO-7491, 7491
Norway

Daniel D. Moran

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

Høgskoleringen
Trondheim NO-7491, 7491
Norway

Konstantin Stadler

Norwegian University of Science and Technology (NTNU) - Department of Industrial Economics and Technology ( email )

NO-7491 Trondheim
Norway

Diana Ivanova

Norwegian University of Science and Technology (NTNU) - Industrial Ecology Programme ( email )

Trondheim, NO-7491
Norway

Kjartan Steen‐Olsen

Norwegian University of Science and Technology (NTNU) - Industrial Ecology Programme

Trondheim, NO-7491
Norway

Alexandre Tisserant

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

Høgskoleringen
Trondheim NO-7491, 7491
Norway

Edgar Hertwich

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

Høgskoleringen
Trondheim NO-7491, 7491
Norway

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