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This paper presents the strategy for a large EU-funded Integrated Project: EXIOPOL ("A New Environmental Accounting Framework Using Externality Data and Input-Output Tools for Policy Analysis"), with special attention for its part in environmentally extended (EE) input-output (IO) analysis. The project has three principal objectives: (a) to synthesize and further develop estimates of the external costs of key environmental impacts for Europe; (b) to develop an EE IO framework for the EU-27 in aglobal context, including as many of these estimates as possible, to allow for the estimation of environmental impacts (expressed as LCA themes, material requirement indicators, ecological footprints or external costs) of the activities of different economic sectors, final consumption activities and resource consumption; (c) to apply the results of the work to external costs and EE I-O for illustrative policy questions.
The use of materials and the generation of waste are linked to economic activities and in many projections these are assumed to be a constant ratio of the economic activities. This may be the case considering detailed economic activities and unchanged technology. However, the assumption of constant coefficients is questionable when linking material use and waste generation to aggregated economic activities. Therefore, in this paper, econometrics is used to test the assumption of constant waste coefficients empirically. The analyses show that an assumption of constant waste coefficients is not supported, generally, and amodel allowing for trendwise changing coefficients is developed and used for projections of waste and material flows in 25 European countries.
In a German case study, environmental input-output analyses (eIOA) combined with NAMEA-type tables were conducted for eleven selected environmental pressure variables. (NAMEA is an acronym for national accounts matrix including environmental accounts.) The analyses were conducted to derive the production-cycle-wide resource use and environmental impact potentials of final-demand product groups. The methodology permits identification and preliminary ranking of 10 product chains along which about two-thirds of German production-born environmental pressures arise. The most relevant product groups are construction work, food, motor vehicles, basic metals, and electricity. The ten product groups are characterized by both high resource requirements and high residual outputs (air emissions, wastes). The EU policy areas of integrated product policy and sustainable use of natural resources may address these product chains as a priority in order to identify and explore the possibility of reducing the environmental impacts from products throughout their life cycles and to decouple environmental impacts from resource use.
Rationale for and interpretation of economy-wide materials flow analysis and derived indicators
(2003)
Economy-wide material flow analysis (MFA) and derived indicators have been developed to monitor and assess the metabolic performance of economies, that is, with respect to the internal economic flows and the exchange of materials with the environment and with other economies. Indicators such as direct material input (DMI) and direct material consumption (DMC) measure material use related to either production or consumption. Domestic hidden flows (HF) account for unused domestic extraction, and foreign HF represent the upstream primary resource requirements of the imports. DMI and domestic and foreign HF account for the total material requirement (TMR) of an economy. Subtracting the exports and their HF provides the total material consumption (TMC). DMI and TMR are used to measure the (de-) coupling of resource use and economic growth, providing the basis for resource efficiency indicators. Accounting for TMR allows detection of shifts from domestic to foreign resource requirements. Net addition to stock (NAS) measures the physical growth of an economy. It indicates the distance from flow equilibrium of inputs and outputs that may be regarded as a necessary condition of a sustainable mature metabolism. We discuss the extent to which MFA-based indicators can also be used to assess the environmental performance. For that purpose we consider different impacts of material flows, and different scales and perspectives of the analysis, and distinguish between turnover-based indicators of generic environmental pressure and impact-based indicators of specific environmental pressure. Indicators such as TMR and TMC are regarded as generic pressure indicators that may not be used to indicate specific environmental impacts. The TMR of industrial countries is discussed with respect to the question of whether volume and composition may be regarded as unsustainable.
It is not the scarcity of resources that constitutes environmental problems, but their use, the physical throughput of our economies. Material flows are a proxy for the totality of the unspecific environmental risks from human activities. As a strategic goal, an increase of the life-cycle-wide resource productivity by a factor 10 is suggested, including the materials bought and sold and the not-valued materials: we have to take into account the product itself and its "ecological rucksack". Material flows are best measured at the input side of the economy, where their number as well as the number of entry gates is limited. Thus here regulation and economic incentives can work more efficiently and less bureaucratically than today. The material intensity of products and services can be expressed as MIPS, the material input per unit of service, and as TMR, the total material requirement on the macro level, an important element in physical input–output tables.