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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.
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.
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.
Environmentally extended multiregional input-output (EE MRIO) tables have emerged as a key framework to provide a comprehensive description of the global economy and analyze its effects on the environment. Of the available EE MRIO databases, EXIOBASE stands out as a database compatible with the System of Environmental-Economic Accounting (SEEA) with a high sectorial detail matched with multiple social and environmental satellite accounts. In this paper, we present the latest developments realized with EXIOBASE 3 - a time series of EE MRIO tables ranging from 1995 to 2011 for 44 countries (28 EU member plus 16 major economies) and five rest of the world regions. EXIOBASE 3 builds upon the previous versions of EXIOBASE by using rectangular supply-use tables (SUTs) in a 163 industry by 200 products classification as the main building blocks. In order to capture structural changes, economic developments, as reported by national statistical agencies, were imposed on the available, disaggregated SUTs from EXIOBASE 2. These initial estimates were further refined by incorporating detailed data on energy, agricultural production, resource extraction, and bilateral trade. EXIOBASE 3 inherits the high level of environmental stressor detail from its precursor, with further improvement in the level of detail for resource extraction. To account for the expansion of the European Union (EU), EXIOBASE 3 was developed with the full EU28 country set (including the new member state Croatia). EXIOBASE 3 provides a unique tool for analyzing the dynamics of environmental pressures of economic activities over time.
EXIOPOL (A New Environmental Accounting Framework Using Externality Data and Input–Output Tools for Policy Analysis) was a European Union (EU)-funded project creating a detailed, global, multiregional environmentally extended Supply and Use table (MR EE SUT) of 43 countries, 129 sectors, 80 resources, and 40 emissions. We sourced primary SUT and input–output tables from Eurostat and non-EU statistical offices. We harmonized and detailed them using auxiliary national accounts data and co-efficient matrices. Imports were allocated to countries of exports using United Nations Commodity Trade Statistics Database trade shares. Optimization procedures removed imbalances in these detailing and trade linking steps. Environmental extensions were added from various sources. We calculated the EU footprint of final consumption with resulting MR EE SUT. EU policies focus mainly on energy and carbon footprints. We show that the EU land, water, and material footprint abroad is much more relevant, and should be prioritized in the EU's environmental product and trade policies.
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.