Arne Geschke

International trade drives biodiversity threats in developing nations.

Human activities are causing Earth’s sixth major extinction event—an accelerating decline of the world’s stocks of biological diversity at rates 100 to 1,000 times pre-human levels. Historically, low-impact intrusion into species habitats arose from local demands for food, fuel and living space. However, in today’s increasingly globalized economy, international trade chains accelerate habitat degradation far removed from the place of consumption. Although adverse effects of economic prosperity and economic inequality have been confirmed, the importance of international trade as a driver of threats to species is poorly understood. Here we show that a significant number of species are threatened as a result of international trade along complex routes, and that, in particular, consumers in developed countries cause threats to species through their demand of commodities that are ultimately produced in developing countries. We linked 25,000 Animalia species threat records from the International Union for Conservation of Nature Red List to more than 15,000 commodities produced in 187 countries and evaluated more than 5 billion supply chains in terms of their biodiversity impacts. Excluding invasive species, we found that 30% of global species threats are due to international trade. In many developed countries, the consumption of imported coffee, tea, sugar, textiles, fish and other manufactured items causes a biodiversity footprint that is larger abroad than at home. Our results emphasize the importance of examining biodiversity loss as a global systemic phenomenon, instead of looking at the degrading or polluting producers in isolation. We anticipate that our findings will facilitate better regulation, sustainable supply-chain certification and consumer product labelling.

BUILDING EORA: A GLOBAL MULTI-REGION INPUT–OUTPUT DATABASE AT HIGH COUNTRY AND SECTOR RESOLUTION

There are a number of initiatives aimed at compiling large-scale global multi-region input–output (MRIO) tables complemented with non-monetary information such as on resource flows and environmental burdens. Depending on purpose or application, MRIO construction and usage has been hampered by a lack of geographical and sectoral detail; at the time of writing, the most advanced initiatives opt for a breakdown into at most 129 regions and 120 sectors. Not all existing global MRIO frameworks feature continuous time series, margins and tax sheets, and information on reliability and uncertainty. Despite these potential limitations, constructing a large MRIO requires significant manual labour and many years of time. This paper describes the results from a project aimed at creating an MRIO account that represents all countries at a detailed sectoral level, allows continuous updating, provides information on data reliability, contains table sheets expressed in basic prices as well as all margins and taxes, and contains a historical time series. We achieve these goals through a high level of procedural standardisation, automation, and data organisation.

Mapping the Structure of the World Economy

We have developed a new series of environmentally extended multi-region input-output (MRIO) tables with applications in carbon, water, and ecological footprinting, and Life-Cycle Assessment, as well as trend and key driver analyses. Such applications have recently been at the forefront of global policy debates, such as about assigning responsibility for emissions embodied in internationally traded products. The new time series was constructed using advanced parallelized supercomputing resources, and significantly advances the previous state of art because of four innovations. First, it is available as a continuous 20-year time series of MRIO tables. Second, it distinguishes 187 individual countries comprising more than 15,000 industry sectors, and hence offers unsurpassed detail. Third, it provides information just 1-3 years delayed therefore significantly improving timeliness. Fourth, it presents MRIO elements with accompanying standard deviations in order to allow users to understand the reliability of data. These advances will lead to material improvements in the capability of applications that rely on input-output tables. The timeliness of information means that analyses are more relevant to current policy questions. The continuity of the time series enables the robust identification of key trends and drivers of global environmental change. The high country and sector detail drastically improves the resolution of Life-Cycle Assessments. Finally, the availability of information on uncertainty allows policy-makers to quantitatively judge the level of confidence that can be placed in the results of analyses.

Frameworks for Comparing Emissions Associated with Production, Consumption, And International Trade

While the problem of climate change is being perceived as increasingly urgent, decision-makers struggle to agree on the distribution of responsibility across countries. In particular, representatives from countries hosting emissions-intensive exporting industries have argued that the importers of emissions-intensive goods should bear the responsibility, and ensuing penalties. Indeed, international trade and carbon leakage appear to play an increasingly important role in the carbon emissions debate. However, definitions of quantities describing the embodiment of carbon emissions in internationally traded products, and their measurement, have to be sufficiently robust before being able to underpin global policy. In this paper we critically examine a number of emissions accounting concepts, examine whether the ensuing carbon balances are compatible with monetary trade balances, discuss their different interpretations, and highlight implications for policy. In particular, we compare the emissions embodied in bilateral trade (EEBT) method which considers total trade flows with domestic emission intensities, with the multi-regional input-output (MRIO) method which considers trade only into final consumption with global emission intensities. If consumption-based emissions of different countries were to be compared, we would suggest an MRIO approach because of the global emissions coverage inherent in this method. If trade-adjusted emission inventories were to be compared, we would suggest an EEBT approach due to the consistency with a monetary trade balance.

Global Supply Chains of Coltan

The spot price for tantalum, a metal used in high‐performance consumer electronics, spiked in 2000, triggering a boom in artisanal mining of surface deposits in the Democratic Republic of Congo (DRC). The profit from columbite‐tantalite ore, or coltan, is alleged to have funded militants during that countrys civil war. One warlord famously claimed that in 2000, coltan delivered a million dollars per month. While coltan mining was neither a necessary nor sufficient cause for the civil war, there is nevertheless a clear association between mining and conflict. In order to trace global flows of coltan out of the DRC, we used a high‐resolution multiregion input‐output (MRIO) table and a hybrid life cycle assessment (LCA) approach to trace exports through international supply chains in order to estimate a “coltan footprint” for various products. In this case study, our aim is to highlight the power and utility of hybrid LCA analysis using high‐resolution global MRIO accounts. We estimate which supply chains, nations, and consumer goods carry the largest loads of embodied coltan. This hybrid LCA case study provides estimates on illicit flows of coltan, estimates a coltan footprint of consumption, and highlights the advantages and challenges of using hybrid monetary‐physical input‐output/LCA approaches to study and quantify a negative social impact as an input to production. If successful, the hybrid LCA approach could be a useful and expedient measurement tool for understanding flows of conflict minerals embodied in supply chains.

INVESTIGATING ALTERNATIVE APPROACHES TO HARMONISE MULTI-REGIONAL INPUT–OUTPUT DATA

Over recent years a small number of global multi-regional input–output (MRIO) databases were developed to describe the entire global economy at high sector detail. We investigate the differences that arise out of applying different construction procedures for two global MRIO databases: The EXIOBASE database, developed as part of the EU FP6 & 7 programs and the Eora database developed at the University of Sydney. The procedures used in EXIOBASE involve a high degree of interrogation and adjustment throughout the construction of the data set, whilst the Eora MRIO relies on single-step mathematical programming techniques and high-performance computing. We unravel the effect of the different approaches taken to develop the databases by undertaking a number of combinatorial experiments in which we exchange parts of the construction process between the EXIOBASE and Eora build pipelines. We conclude that Eoras highly automated data reconciliation approach produces MRIO databases that are of comparable quality to those constructed with EXIOBASEs multi-step approach. However, the reliability and robustness of the resulting MRIO database largely depend on the level of detail and reliability of the underlying raw data.

Constructing a Time Series of Nested Multiregion Input–Output Tables:

We develop a large-scale high-resolution time series of nested multiregion input–output (MRIO) tables, encompassing a range of technical advances that are relevant for MRIO applications worldwide. First, our database is the first ever hierarchically nested system of subnational and international MRIO tables on three independent counts: (a) it features global country-level coverage, (b) it is available as a long annual time series, and (c) it is complemented with matching information on element uncertainty. Second, it is at the time of writing the largest existing MRIO system in the world, and in its creation a number of challenges related to computer storage and run time had to be overcome. The MRIO tables feature complete interregional trade at this level of detail, in combination with detailed regional–international trade with 185 countries. Our experiences with constructing such a large and detailed framework contribute knowledge needed by practitioners wishing to assemble similar databases for other countries, in that our build pipeline can readily be adopted for the integration of subnational MRIO databases, for example, for the United States, China, Australia, Spain, and Germany. We demonstrate our approach by constructing a time series of MRIO tables for the example of the Chinese economy between 1997 and 2011, distinguishing each of the 30 provinces and 135 industry sectors for each province, and linking each province with 185 world countries.

Triple bottom line study of a lignocellulosic biofuel industry

Growing concerns about energy security and climate change have prompted interest in Australia and worldwide to look for alternatives of fossil fuels. Among the renewable fuel sources, biofuels are one such alternative that have received unprecedented attention in the past decade. Cellulosic biofuels, derived from agricultural and wood biomass, could potentially increase Australias oil self‐sufficiency. In this study, we carry out a hybrid life‐cycle assessment (LCA) of a future cellulose‐refining industry located in the Green Triangle region of South Australia. We assess both the upstream and downstream refining stages, and consider as well the life‐cycle effects occurring in conventional industries displaced by the proposed biofuel supply chains. We improve on conventional LCA method by utilising multi‐region input–output (IO) analysis that allows a comprehensive appraisal of the industrys supply chains. Using IO‐based hybrid LCA, we evaluate the social, economic and environmental impacts of lignocellulosic biofuel production. In particular, we evaluate the employment, economic stimulus, energy consumption and greenhouse gas impacts of the biofuel supply chain and also quantify the loss in economic activity and employment in the paper, pulp and paperboard industry resulting from the diversion of forestry biomass to biofuel production. Our results reveal that the loss in economic activity and employment will only account for 10% of the new jobs and additional stimulus generated in the economy. Lignocellulosic biofuel production will create significant new jobs and enhance productivity and economic growth by initiating the growth of new industries in the economy. The energy return on investment for cellulosic biofuel production lies between 2.7 and 5.2, depending on the type of forestry feedstock and the travel distance between the feedstock industry and the cellulose refinery. Furthermore, the biofuel industry will be a net carbon sequester.

Global Material Flows and Resource Productivity: Forty Years of Evidence

The international industrial ecology (IE) research community and United Nations (UN) Environment have, for the first time, agreed on an authoritative and comprehensive data set for global material extraction and trade covering 40 years of global economic activity and natural resource use. This new data set is becoming the standard information source for decision making at the UN in the context of the post‐2015 development agenda, which acknowledges the strong links between sustainable natural resource management, economic prosperity, and human well‐being. Only if economic growth and human development can become substantially decoupled from accelerating material use, waste, and emissions can the tensions inherent in the Sustainable Development Goals be resolved and inclusive human development be achieved. In this paper, we summarize the key findings of the assessment study to make the IE research community aware of this new global research resource. The global results show a massive increase in materials extraction from 22 billion tonnes (Bt) in 1970 to 70 Bt in 2010, and an acceleration in material extraction since 2000. This acceleration has occurred at a time when global population growth has slowed and global economic growth has stalled. The global surge in material extraction has been driven by growing wealth and consumption and accelerating trade. A material footprint perspective shows that demand for materials has grown even in the wealthiest parts of the world. Low‐income countries have benefited least from growing global resource availability and have continued to deliver primary materials to high‐income countries while experiencing few improvements in their domestic material living standards. Material efficiency, the amount of primary materials required per unit of economic activity, has declined since around 2000 because of a shift of global production from very material‐efficient economies to less‐efficient ones. This global trend of recoupling economic activity with material use, driven by industrialization and urbanization in the global South, most notably Asia, has negative impacts on a suite of environmental and social issues, including natural resource depletion, climate change, loss of biodiversity, and uneven economic development. This research is a good example of the IE research community providing information for evidence‐based policy making on the global stage and testament to the growing importance of IE research in achieving global sustainable development.

New multi-regional input–output databases for Australia – enabling timely and flexible regional analysis

ABSTRACT Decision-making at regional scales requires timely information. Within four months of the release of official national statistics, we have produced a time-series (2008–2015) of balanced sub-national, multi-regional supply-and-use tables (MR-SUT), integrated with a set of socio-economic and environmental accounts. This was achieved using the Australian IELab, where data used in this study are available (https://ielab.info/resources/91). Four multi-regional, environmentally extended supply-use tables regionalised in different ways were produced to demonstrate the flexibility of tailoring input–output models to specific research or policy questions. Results for satellite coefficients are sensitive to the chosen regional grouping and method for regionalisation. We demonstrate the relevance of such purpose-built information to government and corporate decision-makers by analysing the indirect economic and employment consequences of a slowdown of the mining boom in Western Australia. The demonstrated innovations in flexibility and timeliness will help move past some of the limitations that have historically hindered the uptake and utility of applied input–output analysis.