Multiregional Input-Output Modelling Opens New Opportunities for the Estimation of Ecological Footprints Embedded in International Trade

1) Stockholm Environment Institute, University of York, Heslington, York, YO10 5DD, UK; www.sei.se/reap *) Corresponding author: Tel.: +44 (0) 1904 43 2899 , Email: tommy.wiedmann@sei.se 2) Integrated Sustainability Analysis (ISA), School of Physics, A28, The University of Sydney, NSW 2006, Australia; www.isa.org.usyd.edu.au 3) Department of Economics, University of Strathclyde, Scotland, G4 OGE, UK; www.strath.ac.uk ABSTRACT This contribution offers a detailed review of recently described multi-region input-output models used to assess environmental impacts of internationally traded goods and services and their suitability for Ecological Footprint calculations. A large number of such environment-economic models have been described but only in the last few years models have emerged that use a more sophisticated multi-region, multi-sector input-output framework. This was made possible through improvements in data availability and quality as well as computability. We identify six major models that employ multi-sector, multi-region input-output analysis in order to calculate environmental impacts embodied in international trade. Results from the studies reviewed demonstrate that it is important to explicitly consider the production recipe, land and energy use as well as emissions in a multi-region, multi-sector and multi-directional trade model, which is globally closed and sectorally deeply disaggregated. Only then reliable figures for indicators of impacts embodied in trade, such as the Ecological Footprint, can be derived. We also describe how to enumerate the resource and pollution content of inter-regional and international trade flows with the aim to illustrate an ideal modelling framework for the estimation of Ecological Footprints. What appears to be absent from previous applications is an account of the analytical method by which Ecological Footprints should ideally be estimated in an international input-output framework. This allows an explicit analysis of the problems that prevent the application of the full method and identification of the most appropriate short-cut methods in a transparent way. Conference Theme: Methodology - Connecting the economy and the environment Keywords: multi-region input-output models, international input-output analysis, international trade, embodied environmental impacts, Ecological Footprint

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