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Sector aggregation bias in environmentally extended input output modeling of raw material flows in Finland

Author

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  • Piñero, Pablo
  • Heikkinen, Mari
  • Mäenpää, Ilmo
  • Pongrácz, Eva

Abstract

This paper presents the impact of sector aggregation bias in Environmentally Extended Input Output (EEIO) models, focusing on raw material flows. Finnish industries are aggregated in different ways and causes of bias are studied. The results show that industries with high raw material use deserve special attention in EEIO models. For Finland, particularly problematic is the aggregation of biomass extractive sectors, since the relative importance of forestry causes noticeable deviations. Sources and strategies to prevent errors are described separately for biomass and mineral raw materials. A brief comparison between raw material flows and greenhouse gas emissions is also made. It is shown that aggregation of extractive sectors biases more in material flow analyses. This issue might be of significance in the near future, owing to the foreseeable changes in the European Union accounting framework.

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  • Piñero, Pablo & Heikkinen, Mari & Mäenpää, Ilmo & Pongrácz, Eva, 2015. "Sector aggregation bias in environmentally extended input output modeling of raw material flows in Finland," Ecological Economics, Elsevier, vol. 119(C), pages 217-229.
    • Handle: RePEc:eee:ecolec:v:119:y:2015:i:c:p:217-229
    DOI: 10.1016/j.ecolecon.2015.09.002
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    Cited by:

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    4. Piñero, Pablo & Pérez-Neira, David & Infante-Amate, Juan & Chas-Amil, María L. & Doldán-García, Xoán R., 2020. "Unequal raw material exchange between and within countries: Galicia (NW Spain) as a core-periphery economy," Ecological Economics, Elsevier, vol. 172(C).
    5. Venkata Sai Gargeya Vunnava & Jaewoo Shin & Lan Zhao & Shweta Singh, 2022. "PIOT‐Hub ‐ A collaborative cloud tool for generation of physical input–output tables using mechanistic engineering models," Journal of Industrial Ecology, Yale University, vol. 26(1), pages 107-120, February.
    6. Hanspeter Wieland & Stefan Giljum & Nina Eisenmenger & Dominik Wiedenhofer & Martin Bruckner & Anke Schaffartzik & Anne Owen, 2020. "Supply versus use designs of environmental extensions in input–output analysis: Conceptual and empirical implications for the case of energy," Journal of Industrial Ecology, Yale University, vol. 24(3), pages 548-563, June.
    7. Harry C. Wilting & Aafke M. Schipper & Olga Ivanova & Diana Ivanova & Mark A. J. Huijbregts, 2021. "Subnational greenhouse gas and land‐based biodiversity footprints in the European Union," Journal of Industrial Ecology, Yale University, vol. 25(1), pages 79-94, February.
    8. Pothen, Frank, 2017. "A structural decomposition of global Raw Material Consumption," Ecological Economics, Elsevier, vol. 141(C), pages 154-165.
    9. Piñero, Pablo & Cazcarro, Ignacio & Arto, Iñaki & Mäenpää, Ilmo & Juutinen, Artti & Pongrácz, Eva, 2018. "Accounting for Raw Material Embodied in Imports by Multi-regional Input-Output Modelling and Life Cycle Assessment, Using Finland as a Study Case," Ecological Economics, Elsevier, vol. 152(C), pages 40-50.
    10. Rehkamp, Sarah & Canning, Patrick, 2018. "Measuring Embodied Blue Water in American Diets: An EIO Supply Chain Approach," Ecological Economics, Elsevier, vol. 147(C), pages 179-188.

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