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Consumption-based CO2 emissions, which are commonly calculated by means of environmentally extended input-output analysis, are gaining wider recognition as a way to complement territorial emission inventories. Although their use has increased significantly in the last years, insufficient attention has been paid to the methodological soundness of the underlying environmental extension. This should follow the internationally agreed accounting rules of the System of Environmental-Economic Accounting, which addresses the activities undertaken by the residents of a country, independent from where these take place. Nonetheless, some footprint calculations use extensions that account for all the activities within the territory, which leads to methodological inconsistencies. Thus, this article introduces the most relevant conceptual differences between these accounting frameworks and shows the magnitude of the gap between them building on the data generated for the EXIOBASE model. It concludes that the differences are high for many countries and their magnitude is increasing over time.
Replacing traditional technologies by renewables can lead to an increase of emissions during early diffusion stages if the emissions avoided during the use phase are exceeded by those associated with the deployment of new units. Based on historical developments and on counterfactual scenarios in which we assume that selected renewable technologies did not diffuse, we conclude that onshore and offshore wind energy have had a positive contribution to climate change mitigation since the beginning of their diffusion in EU27. In contrast, photovoltaic panels did not pay off from an environmental standpoint until very recently, since the benefits expected at the individual plant level were offset until 2013 by the CO2 emissions related to the construction and deployment of the next generation of panels. Considering the varied energy mixes and penetration rates of renewable energies in different areas, several countries can experience similar time gaps between the installation of the first renewable power plants and the moment in which the emissions from their infrastructure are offset.
The analysis demonstrates that the time-profile of renewable energy emissions can be relevant for target-setting and detailed policy design, particularly when renewable energy strategies are pursued in concert with carbon pricing through cap-and-trade systems.
The number of input-output assessments focused on energy has grown considerably in the last years. Many of these assessments combine data from multi-regional input-output (MRIO) databases with energy extensions that completely or partially depict the different stages through which energy products are supplied or used in the economy.
The improper use of some energy extensions can lead to double accounting of some energy flows, but the frequency with which this happens and the potential impact on the results are unknown. Based on a literature review, we estimate that around a quarter of the MRIO-based energy assessments reviewed incurred into double accounting. Using the EXIOBASE MRIO database, we also analyse the effects of double accounting in the absolute values and rankings of different countries' and products' energy footprints.
Building on the insights provided by our analysis, we offer a set of key recommendations to MRIO users to avoid the double accounting problem in the future. Likewise, we conclude that the harmonisation of the energy data across MRIO databases led by experts could simplify the choices of the data users until the provision of official energy extensions by statistical offices becomes a widespread practice.
The current utilisation of natural resources in Germany and Europe is not sustainable, as inter alia stated by the German government as well as by the European Commission. At the same time, increased resource efficiency could lead to various environmental but also economic benefits. This brief study commissioned by Changing Markets presents developments in the field of resource efficiency policies, analyses the status quo of resource consumption with a special focus on fast moving consumer goods and describes potential effects of resource conservations.
Measuring progress towards sustainable development requires appropriate frameworks and databases. The System of Environmental-Economic Accounts (SEEA) is undergoing continuous refinement with these objectives in mind. In SEEA, there is a need for databases to encompass the global dimension of societal metabolism. In this paper, we focus on the latest effort to construct a global multi-regional input-output database (EXIOBASE) with a focus on environmentally relevant activities. The database and its broader analytical framework allows for the as yet most detailed insight into the production-related impacts and "footprints" of our consumption. We explore the methods used to arrive at the database, and some key relationships extracted from the database.