Economics at your fingertips  


Robbie Andrew, Glen Peters and James Lennox

Economic Systems Research, 2009, vol. 21, issue 3, 311-335

Abstract: Multi-regional input-output (MRIO) analysis has been widely used to quantify the global environmental impacts (e.g. energy use, greenhouse gas emissions, water use) embodied in consumption and international trade. Often, analysts have used approximations to a full global MRIO model; however, without access to a full MRIO model the approximation errors are unknown. In this paper we use an MRIO model based on the dataset provided by the Global Trade Analysis Project (GTAP) to quantify the errors introduced by various approximations of the full MRIO model. We find that emissions embodied in imports contribute an average 40% of the total emissions embodied in countries' final demands. For the emissions embodied in imports, we find: (a) that the unidirectional trade model gives a good approximation to the full MRIO model when the number of regions in the model is small; (b) that including only the most important trade partner in terms of emissions embodied in imports can substantially improve the accuracy of estimates; and (c) that a world-average input-output table often provides a good representation of the aggregate 'rest of world' economy. Finally, assuming that imports are produced with domestic technology (Domestic Technology Assumption, DTA) in an MRIO model can introduce significant errors and requires careful validation before results are used. However, the DTA generally produces better estimates than ignoring imports altogether.

Keywords: Input-output analysis; Carbon footprint; Approximation; Trade and environment (search for similar items in EconPapers)
Date: 2009
References: View complete reference list from CitEc
Citations: View citations in EconPapers (60) Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

Access Statistics for this article

Economic Systems Research is currently edited by Bart Los and Manfred Lenzen

More articles in Economic Systems Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

Page updated 2019-10-13
Handle: RePEc:taf:ecsysr:v:21:y:2009:i:3:p:311-335