CALCULATING ENERGY-RELATED CO₂EMISSIONS EMBODIED IN INTERNATIONAL TRADE USING A GLOBAL INPUT–OUTPUT MODEL

TLDR

The Global Resource Accounting Model (GRAM) is an environmentally‑extended multi‑regional input–output model covering 48 sectors in 53 countries and two regions, and it illustrates how industrialised countries can externalise environmental burdens through international trade while maintaining high domestic environmental quality. This paper focuses on the methodological aspects and data requirements of GRAM and presents results for selected countries and aggregated regions. GRAM incorporates CO₂ emissions and other resource categories, enabling estimation of embodied carbon emissions in international trade from 1995 to 2005. The analysis shows that emissions can be allocated to consuming countries and that OECD net‑CO₂ imports rose 80 % between 1995 and 2005. Keywords: Multi‑regional input–output model, carbon footprint, trade, consumption‑based carbon emissions; acknowledgements to anonymous referees and Manfred Lenzen.

Abstract

Abstract The Global Resource Accounting Model (GRAM) is an environmentally-extended multi-regional input–output model, covering 48 sectors in 53 countries and two regions. Next to CO2 emissions, GRAM also includes different resource categories. Using GRAM, we are able to estimate the amount of carbon emissions embodied in international trade for each year between 1995 and 2005. These results include all origins and destinations of emissions, so that emissions can be allocated to countries consuming the products that embody these emissions. Net-CO2 imports of OECD countries increased by 80% between 1995 and 2005. These findings become particularly relevant, as the externalisation of environmental burden through international trade might be an effective strategy for industrialised countries to maintain high environmental quality within their own borders, while externalising the negative environmental consequences of their consumption processes to other parts of the world. This paper focuses on the methodological aspects and data requirements of the model, and shows results for selected countries and aggregated regions. Keywords: Multi-regional input–output modelCarbon footprintTradeConsumption-based carbon emissions Acknowledgements The authors thank two anonymous referees for their very valuable comments. We would especially like to thank Manfred Lenzen for his very detailed and constructive comments.