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Structural production layer decomposition: a new method to measure differences between MRIO databases for footprint assessments

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  • Hanspeter Wieland
  • Stefan Giljum
  • Martin Bruckner
  • Anne Owen
  • Richard Wood

Abstract

Recent empirical assessments revealed that footprint indicators calculated with various multi-regional input–output (MRIO) databases deliver deviating results. In this paper, we propose a new method, called structural production layer decomposition (SPLD), which complements existing structural decomposition approaches. SPLD enables differentiating between effects stemming from specific parts in the technology matrix, e.g. trade blocks vs. domestic blocks, while still allowing to link the various effects to the total region footprint. Using the carbon footprint of the EU-28 in 2011 as an example, we analyse the differences between EXIOBASE, Eora, GTAP and WIOD. Identical environmental data are used across all MRIO databases. In all model comparisons, variations in domestic blocks have a more significant impact on the carbon footprint than variations in trade blocks. The results provide a wealth of information for MRIO developers and are relevant for policy makers designing climate policy measures targeted to specific stages along product supply chains.

Suggested Citation

  • Hanspeter Wieland & Stefan Giljum & Martin Bruckner & Anne Owen & Richard Wood, 2018. "Structural production layer decomposition: a new method to measure differences between MRIO databases for footprint assessments," Economic Systems Research, Taylor & Francis Journals, vol. 30(1), pages 61-84, January.
    • Handle: RePEc:taf:ecsysr:v:30:y:2018:i:1:p:61-84
    DOI: 10.1080/09535314.2017.1350831
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    Cited by:

    1. Simon Schulte & Arthur Jakobs & Stefan Pauliuk, 2021. "Relaxing the import proportionality assumption in multi-regional input–output modelling," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 10(1), pages 1-21, December.
    2. Andrew L. Fanning & Jason Hickel, 2023. "Compensation for atmospheric appropriation," Nature Sustainability, Nature, vol. 6(9), pages 1077-1086, September.
    3. 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.
    4. Wood, Richard & Neuhoff, Karsten & Moran, Dan & Simas, Moana & Grubb, Michael & Stadler, Konstantin, 2020. "The structure, drivers and policy implications of the European carbon footprint," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 20(sup1), pages 39-57.
    5. Ortiz, Mateo & Cadarso, María-Ángeles & López, Luis-Antonio & Jiang, Xuemei, 2022. "The trade-off between the economic and environmental footprints of multinationals’ foreign affiliates," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 85-97.
    6. Ivanova, Diana & Wieland, Hanspeter, 2023. "Tracing carbon footprints to intermediate industries in the United Kingdom," Ecological Economics, Elsevier, vol. 214(C).
    7. Eivind Lekve Bjelle & Johannes Többen & Konstantin Stadler & Thomas Kastner & Michaela C. Theurl & Karl-Heinz Erb & Kjartan-Steen Olsen & Kirsten S. Wiebe & Richard Wood, 2020. "Adding country resolution to EXIOBASE: impacts on land use embodied in trade," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-25, December.
    8. Boratyński, Jakub, 2021. "Decomposing structural decomposition: The role of changes in individual industry shares," Energy Economics, Elsevier, vol. 103(C).
    9. López, Luis Antonio & Arce, Guadalupe & Jiang, Xuemei, 2020. "Mapping China's flows of emissions in the world's carbon footprint: A network approach of production layers," Energy Economics, Elsevier, vol. 87(C).
    10. Fanning, Andrew L. & Hickel, Jason, 2023. "Compensation for atmospheric appropriation," LSE Research Online Documents on Economics 119717, London School of Economics and Political Science, LSE Library.
    11. Raphael Asada & Tamás Krisztin & Fulvio di Fulvio & Florian Kraxner & Tobias Stern, 2020. "Bioeconomic transition?: Projecting consumption‐based biomass and fossil material flows to 2050," Journal of Industrial Ecology, Yale University, vol. 24(5), pages 1059-1073, October.
    12. Chen, Shaoqing & Zhu, Feiyao & Long, Huihui & Yang, Jin, 2019. "Energy footprint controlled by urban demands: How much does supply chain complexity contribute?," Energy, Elsevier, vol. 183(C), pages 561-572.
    13. Dietzenbacher, Erik & Kulionis, Viktoras & Capurro, Filippo, 2020. "Measuring the effects of energy transition: A structural decomposition analysis of the change in renewable energy use between 2000 and 2014," Applied Energy, Elsevier, vol. 258(C).

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