IDEAS home Printed from https://ideas.repec.org/p/zbw/vfsc22/264036.html
   My bibliography  Save this paper

Pulling Ourselves Up by our Bootstraps: The Greenhouse Gas Value of Products, Enterprises and Industries

Author

Listed:
  • von Kalckreuth, Ulf

Abstract

This paper presents a system of greenhouse gas indicators for markets and policymakers. The system is lean and informative. It condenses the relevant product and enterprise-specific information into a single number: the greenhouse gas (GHG) value. Like prices, GHG values are easy to understand, manage and communicate. The envisaged scenario is one in which, at all levels of production, goods and services have two tags - the financial price to pay and the GHG value. GHG values are interdependent. The value for any product will depend on the carbon costs of all inputs. This paper shows that the massive information processing this simultaneity involves can be handed over to the market. Analytically, the system of product-level indicators is solved for the reduced form, the vector of true GHG values. This vector is shown to be the fixed point to which measurement will converge if producers comput e GHG values using the information they have: data from their input providers if available, and estimates elsewhere. This amounts to a process of collective, decentralised learning. Technological changes will automatically be accounted for. A micro-simulation exercise is carried out based on sectoral information on production structure from Germany. The results indicate that convergence is fast. W ith appropriate institutional underpinning, the disclosure of GHG values by producers may become self-sustaining.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • von Kalckreuth, Ulf, 2022. "Pulling Ourselves Up by our Bootstraps: The Greenhouse Gas Value of Products, Enterprises and Industries," VfS Annual Conference 2022 (Basel): Big Data in Economics 264036, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc22:264036
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/264036/1/vfs-2022-pid-69608.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Konstantin Stadler & Richard Wood & Tatyana Bulavskaya & Carl†Johan Södersten & Moana Simas & Sarah Schmidt & Arkaitz Usubiaga & José Acosta†Fernández & Jeroen Kuenen & Martin Bruckner & Stefan, 2018. "EXIOBASE 3: Developing a Time Series of Detailed Environmentally Extended Multi†Regional Input†Output Tables," Journal of Industrial Ecology, Yale University, vol. 22(3), pages 502-515, June.
    2. Stefano Merciai & Jannick Schmidt, 2018. "Methodology for the Construction of Global Multi†Regional Hybrid Supply and Use Tables for the EXIOBASE v3 Database," Journal of Industrial Ecology, Yale University, vol. 22(3), pages 516-531, June.
    3. Kirsten S. Wiebe & Norihiko Yamano, 2016. "Estimating CO2 Emissions Embodied in Final Demand and Trade Using the OECD ICIO 2015: Methodology and Results," OECD Science, Technology and Industry Working Papers 2016/5, OECD Publishing.
    4. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    5. United Nations, 2014. "System of Environmental-Economic Accounting 2012," World Bank Publications - Books, The World Bank Group, number 23959.
    6. Fabienne Fortanier & Guannan Miao & Ans Kolk & Niccolò Pisani, 2020. "Accounting for firm heterogeneity in global value chains," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(3), pages 432-453, April.
    7. Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-271, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Albert, Osei-Owusu Kwame & Marianne, Thomsen & Jonathan, Lindahl & Nino, Javakhishvili Larsen & Dario, Caro, 2020. "Tracking the carbon emissions of Denmark's five regions from a producer and consumer perspective," Ecological Economics, Elsevier, vol. 177(C).
    2. 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.
    3. Francesco Bandarin & Enrico Ciciotti & Marco Cremaschi & Giovanna Madera & Paolo Perulli & Diana Shendrikova, 2020. "Which Future for Cities after COVID-19 An international Survey," Reports, Fondazione Eni Enrico Mattei, October.
    4. Edgar Battand Towa Kouokam & Vanessa Zeller & Wouter Achten, 2019. "Input-output models and waste management analysis: A critical review," ULB Institutional Repository 2013/359535, ULB -- Universite Libre de Bruxelles.
    5. Popescu, Ioana-Stefania & Gibon, Thomas & Hitaj, Claudia & Rubin, Mirco & Benetto, Enrico, 2023. "Are SRI funds financing carbon emissions? An input-output life cycle assessment of investment funds," Ecological Economics, Elsevier, vol. 212(C).
    6. Jingwen Huo & Peipei Chen & Klaus Hubacek & Heran Zheng & Jing Meng & Dabo Guan, 2022. "Full‐scale, near real‐time multi‐regional input–output table for the global emerging economies (EMERGING)," Journal of Industrial Ecology, Yale University, vol. 26(4), pages 1218-1232, August.
    7. Darian McBain & Ali Alsamawi, 2014. "Quantitative accounting for social economic indicators," Natural Resources Forum, Blackwell Publishing, vol. 38(3), pages 193-202, August.
    8. Shepard, Jun U. & Pratson, Lincoln F., 2020. "Hybrid input-output analysis of embodied energy security," Applied Energy, Elsevier, vol. 279(C).
    9. Li, Y.L. & Chen, B. & Chen, G.Q., 2020. "Carbon network embodied in international trade: Global structural evolution and its policy implications," Energy Policy, Elsevier, vol. 139(C).
    10. Matthias Pfaff & Rainer Walz, 2021. "Analysis of the development and structural drivers of raw‐material use in Germany," Journal of Industrial Ecology, Yale University, vol. 25(4), pages 1063-1075, August.
    11. Jingwei Han & Zhixiong Tan & Maozhi Chen & Liang Zhao & Ling Yang & Siying Chen, 2022. "Carbon Footprint Research Based on Input–Output Model—A Global Scientometric Visualization Analysis," IJERPH, MDPI, vol. 19(18), pages 1-23, September.
    12. 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.
    13. Xiang Gao & Sandy Dall'erba & Brenna Ellison & Andre F. T. Avelino & Cuihong Yang, 2022. "When one cannot bypass the byproducts: Plastic packaging waste embedded in production and export," Journal of Industrial Ecology, Yale University, vol. 26(4), pages 1460-1474, August.
    14. Edward Vingwe & Edgar Towa & Arne Remmen, 2020. "Danish Plastic Mass Flows Analysis," Sustainability, MDPI, vol. 12(22), pages 1-22, November.
    15. Maxime Agez & Guillaume Majeau‐Bettez & Manuele Margni & Anders H. Strømman & Réjean Samson, 2020. "Lifting the veil on the correction of double counting incidents in hybrid life cycle assessment," Journal of Industrial Ecology, Yale University, vol. 24(3), pages 517-533, June.
    16. Franco Donati & Sidney Niccolson & Arjan de Koning & Bart Daniels & Maarten Christis & Katrien Boonen & Theo Geerken & João F. D. Rodrigues & Arnold Tukker, 2021. "Modeling the circular economy in environmentally extended input–output: A web application," Journal of Industrial Ecology, Yale University, vol. 25(1), pages 36-50, February.
    17. Edgar Towa & Vanessa Zeller & Stefano Merciai & Jannick Schmidt & Wouter M. J. Achten, 2022. "Toward the development of subnational hybrid input–output tables in a multiregional framework," Journal of Industrial Ecology, Yale University, vol. 26(1), pages 88-106, February.
    18. Ciprian Cimpan & Eivind Lekve Bjelle & Anders Hammer Strømman, 2021. "Plastic packaging flows in Europe: A hybrid input‐output approach," Journal of Industrial Ecology, Yale University, vol. 25(6), pages 1572-1587, December.
    19. Nicolò Golinucci & Nicolò Stevanato & Federica Inzoli & Mohammad Amin Tahavori & Negar Namazifard & Lamya Hussain & Benedetta Camilli & Matteo Vincenzo Rocco & Emanuela Colombo, 2020. "Comprehensive and Integrated Impact Assessment Framework for Development Policies Evaluation: Definition and Application To Kenya," Reports, Fondazione Eni Enrico Mattei, November.
    20. Kan, Siyi & Chen, Bin & Chen, Guoqian, 2019. "Worldwide energy use across global supply chains: Decoupled from economic growth?," Applied Energy, Elsevier, vol. 250(C), pages 1235-1245.

    More about this item

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:vfsc22:264036. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/vfsocea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.