An input-output based alternative to 'ecological footprints' for tracking pollution generation in a small open economy

The usefulness, rigour and consistency of Input-Output (IO) as an accounting framework is well known. However, there is concern over the appropriateness of the standard IO attribution approach, particularly when applied to environmental issues (Bicknell et al. 1998). It is often argued that the source and responsibility for pollution should be located in human private or public consumption. An example is the "ecological footprint" approach of Wackernagel and Rees (1996). However, in the standard IO procedure, the pollution attributed to consumption, particularly private consumption, can be small or even zero. Here we attempt to retain the consumption-orientation of the "ecological footprint" method within an IO framework by implementing a neo-classical linear attribution system (NCLAS) which endogenises trade flows. We argue that this approach has practical and conceptual advantages over the "ecological footprint". The NCLAS method is then applied to the small, open economy of Jersey

The regional distribution of public expendictures in the UK : an exposition and critique of the Barnett formula

The Barnett formula is the official basis upon which increments to public funds are allocated to the devolved regions of the UK for those parts of the budget that are administered locally. There is considerable controversy surrounding the implications of its strict application for the relevant regions. The existing literature focuses primarily on the equity of the spatial changes to government per capita expenditure that would accompany such a change. In contrast, in this paper we attempt to quantify the system-wide economic consequences-the real, relative resource squeeze that accompanies the financial relative squeeze-on one devolved region, Scotland. The analysis uses a multisectoral regional computable general equilibrium modelling approach. We highlight the importance of population endogeneity, particularly since the population proportions used in the formula are now regularly updated

Construction of a multi-sectoral inter-regional IO and SAM database for the UK

The purpose of this paper is to explain the construction of the input-output (IO) and social accounting matrix (SAM) databases for the inter-regional computable general equilibrium (CGE) model of the UK developed as part of the project 'An Analysis of National and Devolved Economic Policies' undertaken as part of the ESRC Devolution and Constitutional Change research programme. We identify four main regions of the UK: Scotland, Wales, Northern Ireland and England. However, in Section 2, we begin by constructing a set of two-region accounts where we focus on Scotland, Wales or Northern Ireland with the other aggregate 'region' labelled 'rest of the UK' or RUK. Then, in Section 3, we extend to a three-region framework where we identify Scotland, Wales and RUK. Finally, in Section 4, we extend further to construct the full 4-region IO and SAM

The environmental "trade balance" between Scotland and the rest of the UK : an inter-regional input-output and SAM analysis

We use an inter-regional input-output (IO) and social accounting matrix (SAM) pollution attribution framework to serve as a platform for sub-national environmental attribution and trade balance analysis. While the existence of significant data problems mean that the quantitative results of this study should be regarded as provisional, the inter-regional economy-environment IO and SAM framework for Scotland and the rest of the UK (RUK) allows an illustrative analysis of some very important issues. There are two key findings. The first is that there are large environmental spillovers between the regions of the UK. This has implications in terms of the devolution of responsibility for achieving targets for reductions in emissions levels and the need for policy co-ordination between the UK national and devolved governments. The second finding is that whilst Scotland runs an economic trade deficit with RUK, the environmental trade balance relationship for the main greenhouse gas, CO2, runs in the opposite direction. In other words, the findings of this study suggest the existence of a CO2 trade surplus between Scotland and the rest of the UK. This suggests that Scotland is bearing a net loss in terms of pollutants as a result of inter-union trade. However, if Scotland can carry out key activities, such as electricity generation, using less polluting technology, it is better for the UK as a whole if this type of relationship exists. Thus, the environmental trade balance is an important part of the devolution settlement

Who pollutes in Scotland? A prelude to an analysis of sustainability policies in a devolved context

The notion of sustainable development has begun to figure prominently in the regional, as well as the national, policy concerns of many industrialized countries. Indicators have typically been used to monitor changes in economic, environmental and social variables to show whether economic development is on a sustainable path. This paper focuses on pollution in Scotland and analyses the sustainability policies in a devolved political context

The CO2 'trade balance' between Scotland and the rest of the UK: Performing a multi-region environmental input-output analysis with limited data

In this paper we attempt an empirical application of the multi-region input-output (MRIO) method proposed by Turner, Lenzen, Wiedmann and Barrett [Turner, K., Lenzen, M., Wiedmann, T., Barrett, J., 2007. Examining the global environmental impact of regional consumption activities - part 1: a technical note on combining input-output and ecological footprint analysis. Ecological Economics 62 (1), 37-44] in a recent issue of this journal in order to enumerate the CO2 pollution content of interregional trade flows between Scotland and the rest of the UK (RUK). We extend the analysis to account for direct emissions generation by households, as final consumers, and to a social accounting matrix (SAM), where a more comprehensive account of incomes and expenditures is possible. While the existence of significant data problems mean that the quantitative results of this study should be regarded as provisional, the interregional economy-environment IO and SAM framework for Scotland and RUK allows an illustrative analysis of some very important issues in terms of the nature and significance of interregional environmental spillovers within the UK and the existence of a CO2 'trade balance' between Scotland and RUK

Milk whey protein concentration and mRNA associated with β-lactoglobulin phenotype

Two common genetic variants of β-lactoglobulin (β-lg), A and B, exist as co- dominant alleles in dairy cattle (Aschaffenburg, 1968). Numerous studies have shown that cows homozygous for β-lg A have more β-lg and less α-lactalbumin (α-la) and casein in their milk than cows expressing only the B variant of β-lg (Ng-Kwai-Hang et al. 1987; Graml et al. 1989; Hill, 1993; Hill et al. 1995, 1997). These differences have a significant impact on the processing characteristics of the milk. For instance, the moisture-adjusted yield of Cheddar cheese is up to 10% higher using milk from cows of the β-lg BB phenotype compared with milk from cows expressing only the A variant (Hill et al. 1997). All these studies, however, describe compositional differences associated with β-lg phenotype in established lactation only. No information is available on the first few weeks of lactation, when there are marked changes in the concentrations of β-lg and α-la (Pérez et al. 1990)

The added value from a general equilibrium analysis of increased efficiency in household energy use

This paper investigates the economic impact of a 5% improvement in the UK household energy efficiency, focussing specifically on total energy rebound effects. The impact is measured through simulations using models that have increasing degrees of endogeneity but are calibrated on a common data set, moving from a basic partial equilibrium approach to a fully specified general equilibrium treatment. The size of the rebound effect is shown to depend on changes in household income, aggregate economic activity and relative prices that can only be captured through a general equilibrium model

The importance of energy price stickiness and real wage inflexibility for the time paths of rebound effects

There has been some controversy over the relative sizes of the short- and long-run rebound effects associated with energy efficiency improvements. Theoretical analysis by Wei (2007) and Saunders implied that the rebound effects would always be greater in the long-run than in the short-run. However, Allan et al (2007) and Turner (2009) found evidence from Computable General Equilibrium simulations that contradicted this result. In this paper we systematically explore the impact of energy price stickiness and real wage inflexibility for the evolution of rebound effects. We find that: the degree of energy price, but not wage, stickiness is an important determinant of the time path of rebound effects and of its relative size in the short- and long-runs; and that there is considerable variation in the scale of rebound effects through time, even where short-run rebound effects are lower than in the long-run. However, the most significant finding overall is that rebound reflects the system-wide interaction between energy producing and energy using sectors

How responsible is a region for its carbon emissions? An integrated input-output and CGE analysis

Targets for CO2 reduction tend to be set in terms of the amount of pollution generated within the borders of a given region or nation. That is, under a "production accounting principle". However, in recent years there has been increased public and policy interest in the notion of a carbon footprint, or the amount of pollution generated globally to serve final consumption demand within a region or nation. That is, switching focus to a "consumption accounting principle". However, this paper argues that a potential issue arising from the increasing focus on consumption-based "carbon footprint" type measures is that while regional CO2 generation embodied in export production is attributed outside of the region (i.e. to the carbon footprints of other regions/nations), regional consumers are likely to benefit from such production. Moreover, where there is a geographical and supply chain gap between producers and final consumers, it may be difficult to identify precisely "whose" carbon footprint emissions should be allocated to. We demonstrate our argument by using a regional computable general equilibrium (CGE) model of the Welsh economy to simulate the impacts of an increase in export demand for the output of an industry (metal manufacturing) that is both carbon and export intensive and generally produces to meet intermediate rather than final demands. In doing so, we demonstrate how the CGE model results may be used to create „post-shock‟ input-output accounts to examine changes in the structure of economic activity and the resulting impact on CO2 generation under both production and consumption accounting measures. In this respect, to our knowledge, the current paper makes a novel contribution in using CGE techniques to model "carbon footprint" impacts of a change in economic activity