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Role of embodied energy in the European manufacturing industry: Application to short-term impacts of a carbon tax

Author

Listed:
  • Gilles Le Blanc

    (Economie numérique - CERNA i3 - Centre d'économie industrielle i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Mathieu Bordigoni

    (CERNA i3 - Centre d'économie industrielle i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique, EDF R&D - EDF R&D - EDF - EDF)

  • Alain Hita

    (EDF - EDF)

Abstract

Role of energy in the manufacturing industry is a major concern for energy and environmental policy design. Issues like energy prices, security of supply and carbon mitigation are often connected to the industry and its competitiveness. This paper examines the role and consequences of embodied energy in the European industry. To this end, a multi-regional input-output analysis including 59 industrial sectors for all European Union countries and 17 more aggregated industries for other regions of the World is developed. Other segments of the economy are not included. This base is combined with energy consumption, carbon emission as well as bilateral trade data for every sector in all included countries. Our main result is that embodied energy in manufactured products' imports represents a significant aspect of the energy situation in European industries, with quantities close to the direct energy consumption. These flows can further be broken down for detailed analysis at the sector level thanks to the number of distinct industries included. Results demonstrate that an important part of embodied energy inside European products is not concerned with domestic energy price changes. In addition, a European-wide carbon tax would induce an unbalanced burden on industries and countries.

Suggested Citation

  • Gilles Le Blanc & Mathieu Bordigoni & Alain Hita, 2012. "Role of embodied energy in the European manufacturing industry: Application to short-term impacts of a carbon tax," Post-Print hal-00768525, HAL.
    • Handle: RePEc:hal:journl:hal-00768525
    DOI: 10.1016/j.enpol.2012.01.011
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    Cited by:

    1. Martinho, Vítor João Pereira Domingues, 2021. "Direct and indirect energy consumption in farming: Impacts from fertilizer use," Energy, Elsevier, vol. 236(C).
    2. Bastien Dufau, 2020. "The influence of a carbon tax on cost competitiveness," Working Papers 2005, Chaire Economie du climat.
    3. Mei Liao & Chao Ma & Dongpu Yao & Huizheng Liu, 2013. "Decomposition of embodied exergy flows in manufactured products and implications for carbon tariff policies," Asia Europe Journal, Springer, vol. 11(3), pages 265-283, September.
    4. Cooper, Simone & Skelton, Alexandra C.H. & Owen, Anne & Densley-Tingley, Danielle & Allwood, Julian M., 2016. "A multi-method approach for analysing the potential employment impacts of material efficiency," Resources, Conservation & Recycling, Elsevier, vol. 109(C), pages 54-66.
    5. Cui, Lian-Biao & Peng, Pan & Zhu, Lei, 2015. "Embodied energy, export policy adjustment and China's sustainable development: A multi-regional input-output analysis," Energy, Elsevier, vol. 82(C), pages 457-467.
    6. Ron H. Chan & Edward Manderson & Fan Zhang, 2022. "Indirect Energy Costs and Comparative Advantage," Economics Discussion Paper Series 2206, Economics, The University of Manchester.
    7. Zhang, Kun & Wang, Qian & Liang, Qiao-Mei & Chen, Hao, 2016. "A bibliometric analysis of research on carbon tax from 1989 to 2014," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 297-310.
    8. Xiaopeng Wang & Xiang Chen & Yiman Cheng & Luyao Zhou & Yi Li & Yongliang Yang, 2020. "Factorial Decomposition of the Energy Footprint of the Shaoxing Textile Industry," Energies, MDPI, vol. 13(7), pages 1-13, April.
    9. Gasim, Anwar A., 2015. "The embodied energy in trade: What role does specialization play?," Energy Policy, Elsevier, vol. 86(C), pages 186-197.
    10. Usubiaga-Liaño, Arkaitz & Arto, Iñaki & Acosta-Fernández, José, 2021. "Double accounting in energy footprint and related assessments: How common is it and what are the consequences?," Energy, Elsevier, vol. 222(C).
    11. Pi-qin Gong & Bao-jun Tang & Yu-chong Xiao & Gao-jie Lin & Jian-yun Liu, 2016. "Research on China export structure adjustment: an embodied carbon perspective," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 129-151, November.
    12. Skelton, Alexandra C.H. & Allwood, Julian M., 2013. "The incentives for supply chain collaboration to improve material efficiency in the use of steel: An analysis using input output techniques," Ecological Economics, Elsevier, vol. 89(C), pages 33-42.
    13. Yang, Ranran & Long, Ruyin & Yue, Ting & Shi, Haihong, 2014. "Calculation of embodied energy in Sino-USA trade: 1997–2011," Energy Policy, Elsevier, vol. 72(C), pages 110-119.
    14. Ripa, M. & Di Felice, L.J. & Giampietro, M., 2021. "The energy metabolism of post-industrial economies. A framework to account for externalization across scales," Energy, Elsevier, vol. 214(C).
    15. Mizgajski Jan T., 2012. "The Impact of Polish-German Trade Flows on CO2 Emissions," Folia Oeconomica Stetinensia, Sciendo, vol. 11(1), pages 152-164, January.
    16. Tang, Xu & Snowden, Simon & Höök, Mikael, 2013. "Analysis of energy embodied in the international trade of UK," Energy Policy, Elsevier, vol. 57(C), pages 418-428.
    17. Tian, Xu & Chen, Bin & Geng, Yong & Zhong, Shaozhuo & Gao, Cuixia & Wilson, Jeffrey & Cui, Xiaowei & Dou, Yi, 2019. "Energy footprint pathways of China," Energy, Elsevier, vol. 180(C), pages 330-340.
    18. Zhang, Zengkai & Guo, Ju'e & Hewings, Geoffrey J.D., 2014. "The effects of direct trade within China on regional and national CO2 emissions," Energy Economics, Elsevier, vol. 46(C), pages 161-175.
    19. repec:eco:journ2:2017-04-31 is not listed on IDEAS
    20. Duarte, Rosa & Feng, Kuishuang & Hubacek, Klaus & Sánchez-Chóliz, Julio & Sarasa, Cristina & Sun, Laixiang, 2016. "Modeling the carbon consequences of pro-environmental consumer behavior," Applied Energy, Elsevier, vol. 184(C), pages 1207-1216.
    21. Bortolamedi, Markus, 2015. "Accounting for hidden energy dependency: The impact of energy embodied in traded goods on cross-country energy security assessments," Energy, Elsevier, vol. 93(P2), pages 1361-1372.
    22. Jinghan Chen & Wen Zhou & Hongtao Yang, 2019. "Is Embodied Energy a Better Starting Point for Solving Energy Security Issues?—Based on an Overview of Embodied Energy-Related Research," Sustainability, MDPI, vol. 11(16), pages 1-22, August.
    23. Chen, G.Q. & Wu, X.F., 2017. "Energy overview for globalized world economy: Source, supply chain and sink," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 735-749.
    24. Sato, Masahiro & Kharrazi, Ali & Nakayama, Hirofumi & Kraines, Steven & Yarime, Masaru, 2017. "Quantifying the supplier-portfolio diversity of embodied energy: Strategic implications for strengthening energy resilience," Energy Policy, Elsevier, vol. 105(C), pages 41-52.

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