Applying consumer responsibility principle in evaluating environmental load of carbon emissions

There is a need for a proper indicator in order to assess the environmental impact of international trade, therefore using the carbon footprint as an indicator can be relevant and useful. The aim of this study is to show from a methodological perspective how the carbon footprint, combined with input- output models can be used for analysing the impacts of international trade on the sustainable use of national resources in a country. The use of the input-output approach has the essential advantage of being able to track the transformation of goods through the economy. The study examines the environmental impact of consumption related to international trade, using the consumer responsibility principle. In this study the use of the carbon footprint and input-output methodology is shown on the example of the Hungarian consumption and the impact of international trade. Moving from a production- based approach in climate policy to a consumption-perspective principle and allocation, would also help to increase the efficiency of emission reduction targets and the evaluation of the ecological impacts of international trade

Some conceptual difficulties regarding "net" multipliers

Multipliers are routinely used for impact evaluation of private projects and public policies at the national and subnational levels. Oosterhaven and Stelder (2002) correctly pointed out the misuse of standard 'gross' multipliers and proposed the concept of 'net' multiplier as a solution to this bad practice. We prove their proposal is not well founded. We do so by showing that supporting theorems are faulty in enunciation and demonstration. The proofs are flawed due to an analytical error but the theorems themselves cannot be salvaged as generic, non-curiosum counterexamples demonstrate. We also provide a general analytical framework for multipliers and, using it, we show that standard 'gross' multipliers are all that is needed within the interindustry model since they follow the causal logic of the economic model, are well defined and independent of exogenous shocks, and are interpretable as predictors for change

The Leverage of Demographic Dynamics on Carbon Dioxide Emissions: Does Age Structure Matter?

This article provides a methodological contribution to the study of the effect of changes in population age structure on carbon dioxide (CO2) emissions. First, I propose a generalization of the IPAT equation to a multisector economy with an age-structured population and discuss the insights that can be obtained in the context of stable population theory. Second, I suggest a statistical model of household consumption as a function of household size and age structure to quantitatively evaluate the extent of economies of scale in consumption of energy-intensive goods, and to estimate age-specific profiles of consumption of energy-intensive goods and of CO2 emissions. Third, I offer an illustration of the methodologies using data for the United States. The analysis shows that per-capita CO2 emissions increase with age until the individual is in his or her 60s, and then emissions tend to decrease. Holding everything else constant, the expected change in U.S. population age distribution during the next four decades is likely to have a small, but noticeable, positive impact on CO2 emissions

The Dynamics of Nestedness Predicts the Evolution of Industrial Ecosystems

In economic systems, the mix of products that countries make or export has been shown to be a strong leading indicator of economic growth. Hence, methods to characterize and predict the structure of the network connecting countries to the products that they export are relevant for understanding the dynamics of economic development. Here we study the presence and absence of industries at the global and national levels and show that these networks are significantly nested. This means that the less filled rows and columns of these networks' adjacency matrices tend to be subsets of the fuller rows and columns. Moreover, we show that nestedness remains relatively stable as the matrices become more filled over time and that this occurs because of a bias for industries that deviate from the networks' nestedness to disappear, and a bias for the missing industries that reduce nestedness to appear. This makes the appearance and disappearance of individual industries in each location predictable. We interpret the high level of nestedness observed in these networks in the context of the neutral model of development introduced by Hidalgo and Hausmann (2009). We show that, for the observed fills, the model can reproduce the high level of nestedness observed in these networks only when we assume a high level of heterogeneity in the distribution of capabilities available in countries and required by products. In the context of the neutral model, this implies that the high level of nestedness observed in these economic networks emerges as a combination of both, the complementarity of inputs and heterogeneity in the number of capabilities available in countries and required by products. The stability of nestedness in industrial ecosystems, and the predictability implied by it, demonstrates the importance of the study of network properties in the evolution of economic networks.Comment: 26 page

Modeling Supply Networks and Business Cycles as Unstable Transport Phenomena

Physical concepts developed to describe instabilities in traffic flows can be generalized in a way that allows one to understand the well-known instability of supply chains (the so-called ``bullwhip effect''). That is, small variations in the consumption rate can cause large variations in the production rate of companies generating the requested product. Interestingly, the resulting oscillations have characteristic frequencies which are considerably lower than the variations in the consumption rate. This suggests that instabilities of supply chains may be the reason for the existence of business cycles. At the same time, we establish some link to queuing theory and between micro- and macroeconomics.Comment: For related work see http://www.helbing.or

Efeitos tecnológicos e estruturais nas emissões brasileiras de CO2 para o período 2000 a 2005: uma abordagem de análise de decomposição estrutural (SDA)

Este artigo objetiva mensurar a influência de mudanças na estrutura produtiva sobre as variações nas emissões de dióxido de carbono brasileiras. O método utilizado foi o de análise de decomposição estrutural (SDA - Structural Decomposition Analysis). Trata-se de um método de insumo-produto, logo de estática comparativa, que permite detalhar as mudanças tanto tecnológicas quanto no processo produtivo em termos setoriais. As emissões setoriais foram obtidas junto ao balanço de emissões, energias equivalente e final, e as matrizes IBGE de insumo-produto são provenientes do Sistema de Contas Nacionais do IBGE, ambas para os anos de 2000 e 2005, sendo adaptadas para 15 setores econômicos brasileiros. Os principais resultados indicam que: os setores de transportes, siderurgia e alimentos e bebidas são aqueles que se mostraram mais propensos ao aumento de emissões quando considerada a variação na demanda final, enquanto os setores indústria do cimento, de minerais não metálicos e papel e celulose se destacam por redução de emissões devido à mudança tecnológica

Combining Geoprocessing and Interregional Input-Output Systems: An Application to the State of São Paulo in Brazil

This work develops a method for the construction of input-output systems capable of estimating the flows of goods and services among cities, having in view that the creation of accurate strategies depends on the regional peculiarities incorporated in the scope of the economic planning researches. The study innovates by combining geoprocessing with inputoutput theory elements, facilitating the interpretation of the information available on the extensive data set of interregional input-output systems. The analytical potential is showed through a panoramic evaluation of the São Paulo State supply and demand relations, and by the application of the estimated input-output system to a study of the regional impacts of the “Bolsa Familia” Program, an income transfer program from the Federal government. The results show that this program must be understood not only as a form of income transference, but also as a catalytic agent for decreasing the regional inequality inside the state