Explaining value chain differences in MRIO databases through structural path decomposition

ABSTRACT Many multiregional input–output (MRIO) databases are used to calculate consumption-based accounts. Results feature in climate policy discussion on emissions reduction responsibilities; yet studies show that outcomes produced by each database differ. This paper compares the emissions associated with value chains from Eora, EXIOBASE, GTAP and WIOD. Structural path analysis identifies the largest paths in each database and the differences in common paths are calculated. For the top 100 value chain paths that contain the largest difference, structural path decomposition is used to identify the contribution each part of the value chain makes towards the difference. The results identify and quantify key flows that are the cause of difference in the databases. From these, we can conclude that key MRIO database construction decisions, such as using the residence or territorial principle for emissions allocation and whether energy spends are reallocated based on physical data, are the major causes of differences.

[1]  Yves Crama,et al.  Structural decomposition of multipliers in input-output or social accounting matrix analysis , 1984, Économie appliquée.

[2]  Manfred Lenzen,et al.  Environmentally important paths, linkages and key sectors in the Australian economy , 2003 .

[3]  Arkaitz Usubiaga,et al.  CARBON EMISSION ACCOUNTING IN MRIO MODELS: THE TERRITORY VS. THE RESIDENCE PRINCIPLE , 2015 .

[4]  Stephan Moll,et al.  Towards a global multi-regional environmentally extended input-output database , 2009 .

[5]  Bart Los,et al.  Structural decomposition techniques : sense and sensitivity , 1998 .

[6]  Nan Li,et al.  Analysis of impact factors on China's CO2 emissions from the view of supply chain paths , 2014 .

[7]  J. Sun.  Changes in energy consumption and energy intensity: A complete decomposition model , 1998 .

[8]  S. Lutter,et al.  Quo Vadis MRIO? Methodological, data and institutional requirements for multi-region input-output analysis , 2011 .

[9]  Edgar G. Hertwich,et al.  HARMONISING NATIONAL INPUT—OUTPUT TABLES FOR CONSUMPTION-BASED ACCOUNTING — EXPERIENCES FROM EXIOPOL , 2014 .

[10]  E. Dietzenbacher,et al.  Mixing oil and water? Using hybrid input-output tables in a Structural decomposition analysis , 2006 .

[11]  Manfred Lenzen,et al.  BUILDING EORA: A GLOBAL MULTI-REGION INPUT–OUTPUT DATABASE AT HIGH COUNTRY AND SECTOR RESOLUTION , 2013 .

[12]  Jacques Defourny,et al.  STRUCTURAL PATH ANALYSIS AND MULTIPLIER DECOMPOSITION WITHIN A SOCIAL ACCOUNTING MATRIX FRAMEWORK , 1984 .

[13]  Glen P. Peters,et al.  CONSTRUCTING AN ENVIRONMENTALLY-EXTENDED MULTI-REGIONAL INPUT–OUTPUT TABLE USING THE GTAP DATABASE , 2011 .

[14]  Manfred Lenzen,et al.  An Application of a Modified Ecological Footprint Method and Structural Path Analysis in a Comparative Institutional Study , 2003 .

[15]  Manfred Lenzen,et al.  EFFECTS OF SECTOR AGGREGATION ON CO2 MULTIPLIERS IN MULTIREGIONAL INPUT–OUTPUT ANALYSES , 2014 .

[16]  Robert A. McDougall,et al.  Chapter 17 An Energy Data Base for GTAP , 2001 .

[17]  G. Peters,et al.  A synthesis of carbon in international trade , 2012 .

[18]  Manfred Lenzen,et al.  Mapping the structure of the world economy. , 2012, Environmental science & technology.

[19]  Manfred Lenzen,et al.  A STRUCTURAL DECOMPOSITION APPROACH TO COMPARING MRIO DATABASES , 2014 .

[20]  Edgar G. Hertwich,et al.  Approaches to correct for double counting in tiered hybrid life cycle inventories , 2009 .

[21]  Anne Owen,et al.  Techniques for evaluating the differences in consumption-based accounts: a comparative evaluation of Eora, GTAP and WIOD , 2015 .

[22]  Anders Hammer Strømman,et al.  Dealing with double-counting in tiered hybrid life-cycle inventories: a few comments – response , 2009 .

[23]  G. Treloar.  Extracting Embodied Energy Paths from Input–Output Tables: Towards an Input–Output-based Hybrid Energy Analysis Method , 1997 .

[24]  Matthias Schroder,et al.  Input–Output Analysis , 2011 .

[25]  Paul de Boer,et al.  Generalized Fisher index or Siegel–Shapley decomposition? , 2009 .

[26]  Bart Los,et al.  THE CONSTRUCTION OF WORLD INPUT–OUTPUT TABLES IN THE WIOD PROJECT , 2013 .

[27]  Klaus Hubacek,et al.  A "carbonizing dragon": China's fast growing CO2 emissions revisited. , 2011, Environmental science & technology.

[28]  Arnold Tukker,et al.  EXIOPOL – DEVELOPMENT AND ILLUSTRATIVE ANALYSES OF A DETAILED GLOBAL MR EE SUT/IOT , 2013 .

[29]  Daniel Moran,et al.  CONVERGENCE BETWEEN THE EORA, WIOD, EXIOBASE, AND OPENEU'S CONSUMPTION-BASED CARBON ACCOUNTS , 2014 .

[30]  Edgar G. Hertwich,et al.  Structural analysis of international trade: Environmental impacts of Norway , 2006 .

[31]  Manfred Lenzen,et al.  Integrating sustainable chain management with triple bottom line accounting , 2005 .

[32]  Rutger Hoekstra,et al.  Structural Decomposition Analysis of Physical Flows in the Economy , 2002 .

[33]  Robert McDougall,et al.  Global trade, assistance, and production : The GTAP 5 Data Base , 2002 .

[34]  Sangwon Suh,et al.  Theory of materials and energy flow analysis in ecology and economics , 2005 .

[35]  Manfred Lenzen,et al.  UNCERTAINTY ANALYSIS FOR MULTI-REGION INPUT–OUTPUT MODELS – A CASE STUDY OF THE UK'S CARBON FOOTPRINT , 2010 .

[36]  M. Lenzen,et al.  The path exchange method for hybrid LCA. , 2009, Environmental science & technology.

[37]  John Barrett,et al.  Identification of 'carbon hot-spots' and quantification of GHG intensities in the biodiesel supply chain using hybrid LCA and structural path analysis. , 2011, Environmental science & technology.

[38]  Manfred Lenzen,et al.  Errors in Conventional and Input‐Output—based Life—Cycle Inventories , 2000 .

[39]  Manfred Lenzen,et al.  Structural path decomposition , 2009 .

[40]  S. Davis,et al.  Consumption-based accounting of CO2 emissions , 2010, Proceedings of the National Academy of Sciences.

[41]  Manfred Lenzen,et al.  International trade drives biodiversity threats in developing nations , 2012, Nature.

[42]  Manfred Lenzen,et al.  Structural path analysis of ecosystem networks , 2007 .

[43]  Yuko Oshita,et al.  Identifying critical supply chain paths that drive changes in CO2 emissions , 2012 .

[44]  Bart Los,et al.  Structural Decomposition Analyses with Dependent Determinants , 2000 .

[45]  Michael Sonis,et al.  Block Structural Path Analysis: Applications to Structural Changes in the Indonesian Economy , 1997 .