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The expectations of and covariances between carbon footprints

João F. D. Rodrigues, Rong Yuan and Hai Xiang Lin

Economic Systems Research, 2020, vol. 32, issue 2, 192-201

Abstract: Carbon footprints and other environmentally extended input–output indicators are obtained as aggregations of emissions embodied in supply chains (EESCs), which express the emissions occurring in a specific production activity to satisfy a given volume of final demand. Here we derive theoretical approximations of the expectations of and covariances between EESCs, as a function of the expectations of and covariances between source data (technical coefficients, emission coefficients and final demand volumes) through a Taylor expansion. We report an empirical test of those approximations, using a sample of 5 global multi-regional input–output models in the year 2007, of which we extract 22 single-region input–output systems with 17 sectors. We find that approximations of multipliers perform better than those of EESC, and approximations of expectations perform better than those of covariances.

Date: 2020
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DOI: 10.1080/09535314.2019.1659757

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