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The expectations of and covariances between carbon footprints

Author

Listed:
  • João F. D. Rodrigues
  • Rong Yuan
  • Hai Xiang Lin

Abstract

Carbon footprints and other environmentally extended input–output indicators are obtained as aggregations of emissions embodied in supply chains (EESCs), which express the emissions occurring in a specific production activity to satisfy a given volume of final demand. Here we derive theoretical approximations of the expectations of and covariances between EESCs, as a function of the expectations of and covariances between source data (technical coefficients, emission coefficients and final demand volumes) through a Taylor expansion. We report an empirical test of those approximations, using a sample of 5 global multi-regional input–output models in the year 2007, of which we extract 22 single-region input–output systems with 17 sectors. We find that approximations of multipliers perform better than those of EESC, and approximations of expectations perform better than those of covariances.

Suggested Citation

  • João F. D. Rodrigues & Rong Yuan & Hai Xiang Lin, 2020. "The expectations of and covariances between carbon footprints," Economic Systems Research, Taylor & Francis Journals, vol. 32(2), pages 192-201, April.
  • Handle: RePEc:taf:ecsysr:v:32:y:2020:i:2:p:192-201
    DOI: 10.1080/09535314.2019.1659757
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