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Embodied Resource Flows in a Global Economy

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  • Faye Duchin
  • Stephen H. Levine

Abstract

This article presents a methodology for identifying critical links in global resource supply chains by tracking resources from their extraction in one region of the world economy through their embodiment in intermediate products in the same and other regions to eventual embodiment in final goods. We build on previous work that applied an absorbing Markov chain (AMC) to results obtained using an input‐output (IO) model of a single region to define a resource‐specific network within that economy. In the absence of model calculations, the AMC can also be applied to standard IO data for a past year. This article first generalizes the analytic framework from a single region to the important case of the global resource‐specific network. This network typically includes cycling of embodied resources between sectors not only within each economy, but also among regions, as subsequent rounds of intermediate products are traded. Next, we refine that analysis to exhibit a crucial subnetwork, the resource end‐use network, which only tracks the portion of the resource that ends up embodied in a specific final product in a given region. Finally, we develop techniques to distinguish key branches of these networks and provide detailed insights about the structure of global resource dependence. A numerical example is applied to results of scenario analysis using an IO model of the world economy. Two alternative scenarios are compared. In each scenario, embodied resources are carried over specific branches of a global network in three regions using three resources to produce four goods.

Suggested Citation

  • Faye Duchin & Stephen H. Levine, 2013. "Embodied Resource Flows in a Global Economy," Journal of Industrial Ecology, Yale University, vol. 17(1), pages 65-78, February.
  • Handle: RePEc:bla:inecol:v:17:y:2013:i:1:p:65-78
    DOI: 10.1111/j.1530-9290.2012.00498.x
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    Cited by:

    1. Jean-Yves Courtonne & Pierre-Yves Longaretti & Julien Alapetite & Denis Dupré, 2015. "Environmental pressures embodied in the French cereals supply chain," Working Papers hal-01150067, HAL.
    2. Shogo Eguchi, 2017. "Accounting for resource accumulation in Japanese prefectures: an environmental efficiency analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-22, December.
    3. Wang, Xibo & Wei, Wendong & Ge, Jianping & Wu, Bin & Bu, Wei & Li, Jiashuo & Yao, Mingtao & Guan, Qing, 2017. "Embodied rare earths flow between industrial sectors in China: A complex network approach," Resources, Conservation & Recycling, Elsevier, vol. 125(C), pages 363-374.
    4. Jan Streeck & Hanspeter Wieland & Stefan Pauliuk & Barbara Plank & Kenichi Nakajima & Dominik Wiedenhofer, 2023. "A review of methods to trace material flows into final products in dynamic material flow analysis: Comparative application of six methods to the United States and EXIOBASE3 regions, Part 2," Journal of Industrial Ecology, Yale University, vol. 27(2), pages 457-475, April.
    5. Pauliuk, Stefan & Kondo, Yasushi & Nakamura, Shinichiro & Nakajima, Kenichi, 2017. "Regional distribution and losses of end-of-life steel throughout multiple product life cycles—Insights from the global multiregional MaTrace model," Resources, Conservation & Recycling, Elsevier, vol. 116(C), pages 84-93.
    6. Jan Streeck & Stefan Pauliuk & Hanspeter Wieland & Dominik Wiedenhofer, 2023. "A review of methods to trace material flows into final products in dynamic material flow analysis: From industry shipments in physical units to monetary input–output tables, Part 1," Journal of Industrial Ecology, Yale University, vol. 27(2), pages 436-456, April.
    7. An, Qier & An, Haizhong & Wang, Lang & Gao, Xiangyun & Lv, Na, 2015. "Analysis of embodied exergy flow between Chinese industries based on network theory," Ecological Modelling, Elsevier, vol. 318(C), pages 26-35.
    8. Glenn A. Aguilar-Hernandez & Carlos Pablo Sigüenza-Sanchez & Franco Donati & João F. D. Rodrigues & Arnold Tukker, 2018. "Assessing circularity interventions: a review of EEIOA-based studies," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-24, December.
    9. Shogo Eguchi, 2017. "Understanding productivity declines of resource accumulation in the prefectures of Japan," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(2), pages 337-357, April.

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