Stefan Giljum

Methodology and Indicators of Economy-wide Material Flow Accounting

Summary This contribution presents the state of the art of economywide material flow accounting. Starting from a brief recollection of the intellectual and policy history of this approach, we outline system definition, key methodological assumptions, and derived indicators. The next section makes an effort to establish data reliability and uncertainty for a number of existing multinational (European and global) material flow accounting (MFA) data compilations and discusses sources of inconsistencies and variations for some indicators and trends. The results show that the methodology has reached a certain maturity: Coefficients of variation between databases lie in the range of 10% to 20%, and correlations between databases across countries amount to an average R 2 of 0.95. After discussing some of the research frontiers for further methodological development, we conclude that the material flow accounting framework and the data generated have reached a maturity that warrants material flow indicators to complement traditional economic and demographic information in providing a sound basis for discussing national and international policies for sustainable resource use.

Applying physical input-output analysis to estimate land appropriation (ecological footprints) of international trade activities

In the last few years some studies have been presented, which link land use accounting and input–output analysis (based on monetary input–output tables (MIOTs)) for the calculation of direct and indirect land appropriation of production and consumption activities. The compilation of the first comprehensive physical input–output tables (PIOTs) for some western European countries in the 1990s opened new possibilities for linking physical accounting and input–output analysis. Using a physical multiplier for this kind of calculation is more appropriate, as the most land intensive sectors are also the sectors with the highest amounts of material flows. Physical input–output analysis illustrates land appropriation in relation to material flows of each of the sectors, which is more appropriate from the point of view of environmental pressures than land appropriation in relation to monetary flows of a MIOT. Physical input–output analysis has so far not been applied for any land-related studies. Based on a physical input–output model of the EU-15, physical input–output analysis is applied in this paper, in order to calculate direct and indirect land requirements for the production of exports from EU-15 to the rest of the world.

North-South Trade and the Distribution of Environmental Goods and Burdens: a Biophysical Perspective:

In the last 20 years, the implications of international trade for environmental distribution between North and South gained increasing attention in the debate on sustainable development. In this article, the authors take a biophysical perspective to analyze the distribution of environmental goods versus environmental burdens in North-South trade relations. Studies based on physical accounting are particularly suitable to elucidate environmental consequences of economic specialization processes in different world regions, as they clarify implications for both the use of natural resources and the generation of waste and of emissions in a coherent and comprehensive manner. Empirical evidence from biophysical accounting studies suggests that the formation of specific metabolic profiles of societies in the North and in the South, as a consequence of economic specialization, leads to an unequal environmental distribution. The article closes with an evaluation of policy measures and instruments appropriate for reducing negative environmental consequences of North-South trade.

Trade, Materials Flows, and Economic Development in the South: The Example of Chile

Materials flow analysis (MFA) is internationally recognized as a key tool to assess the biophysical metabolism of societies and to provide aggregated indicators for environmental pressures of human activities. Economy-wide MFAs have been compiled for a number of Organisation for Economic Cooperation and Development (OECD) countries, but so far very few studies exist for countries in the South. In this article, the first materials-flow-based indicators for Chile are presented. The article analyzes the restructuring of the Chilean economy toward an active integration in the world markets from the perspective of natural resource use in a time series from 1973 to 2000. Special emphasis is placed on the assessment of materials flows related to Chiles international trade relations. Results show that material inputs to the Chilean economy increased by a factor of 6, mainly as a result of the promotion of resource-intensive exports from the mining, fruit growing, forestry, and fishery sectors. At more than 40 tons, Chiles resource use per capita at present is one of the highest in the world. The article addresses the main shortcomings of the MFA approach, such as weightbased aggregation and the missing links between environmental pressures and impacts, and gives suggestions for methodological improvements and possible extensions of the MFA framework, with the intent of developing MFA into a more powerful tool for policy use.

Calculating Energy-Related Co 2 Emissions Embodied In International Trade Using A Global Input--Output Model

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.

The Raw Material Equivalents of International Trade

This article aims at estimating the raw material equivalents (RMEs)the upstream used material flows required along the production chainof imports and exports for some Latin American countries: Brazil, Chile, Colombia, Ecuador, and Mexico. Furthermore, the United States is included in the analysis as a reference for a high-income economy. The RME concept and the empirical evidence are articulated by use of an inputoutput methodology. Results are set out for the year 2003 for each of the countries and in time series for the years 1977, 1986, 1996, and 2003 in the case of Chile. The findings show not only the physical dimensions behind direct material traded but also how the previous exporter (importer) position of a country (based on standard material flow analysis indicators) deteriorates, alleviates, or changes. Implications for material consumption indicators, such as direct material consumption (DMC) and raw material consumption (RMC), are also drawn. The results suggest basing the discussion of material flows on a broader set of indicators to obtain a more comprehensive picture of the implications of international trade and its impacts on the environment.

Carbon and Materials Embodied in the International Trade of Emerging Economies

Production in emerging economies, such as Brazil, Russia, India, China, South Africa, and Argentina (BRICSA), increased substantially over the past two decades. This is, on the one hand, due to growing domestic demand within these countries, and, on the other hand, due to a deepened international division of work. Global trade linkages have become denser and production chains are no longer restricted to only one or two countries. The volume of international trade in intermediate inputs as well as final consumption goods has tripled in the past two decades. With this, carbon dioxide (CO) emissions and materials embodied in traded goods have increased, making it increasingly difficult to identify the actual causes of emissions and material extractions, as producing and extracting countries are not necessarily consuming the resulting goods. Using the multiregional input‐output Global Resource Accounting Model (GRAM), this article shows how global carbon emissions and materials requirements are allocated from producing/extracting countries to consuming countries. It thereby contributes to the rapidly growing body of literature on environmental factors embodied in international trade by bringing two key environmental categories — CO emissions and materials — into one consistent and global framework of analysis for the first time. The results show that part of the increase in carbon emissions and materials extraction in BRICSA is caused by increasing amounts of trade with countries in the Organisation for Economic Co‐operation and Development as well as a growing demand for goods and services produced within BRICSA.

Material Footprint Assessment in a Global Input‐Output Framework

Material flow‐based indicators play an important role in measuring green and resource‐efficient growth. This article examines the global flows of materials and the amounts of materials directly and indirectly necessary to satisfy domestic final demand in different countries world‐wide. We calculate the indicator Raw Material Consumption (RMC), also referred to as material footprint (MF), by applying a global, multiregional input‐output model based on the Global Trade Analysis Project (GTAP) database and extended by material extraction data. We examine world‐wide patterns of material extraction and materials embodied in trade and consumption, investigating changes between 1997 and 2007. We find that flows of materials related to international trade have increased by almost 60% between 1997 and 2007. We show that the differences in MFs per capita are huge, ranging from up to 100 tonnes in the rich, oil‐exporting countries to values as low as 1.5 to 2.0 tonnes in some developing countries. We also quantify the differences between the indicators Domestic Material Consumption (DMC) and RMC, illustrating that net material exporters generally have a DMC larger than RMC, whereas the reverse is observed for net importers. Finally, we confirm the fact that most countries with stable or declining DMCs actually show increasing RMCs, indicating the occurrence of leakage effects, which are not fully captured by DMC. This challenges the world‐wide use of DMC as a headline indicator for national material consumption and calls for the consideration of upstream material requirements of international trade flows.

Alternative Approaches of Physical Input-Output Analysis to Estimate Primary Material Inputs of Production and Consumption Activities

In the last few years, a number of studies have been presented that link material flow accounting and input–output analysis (based on monetary input–output tables) for the calculation of direct and indirect resource inputs for production and consumption activities. The compilation of the first physical input–output tables for some European countries in the 1990s opened new possibilities for linking physical accounting and input– output analysis. Physical input–output analysis has so far only been applied for selected materials, but it has not been used for comprehensive assessments of material requirements of economic activities. In this paper, possibilities and limits of this new input–output approach are clarified. We present and discuss a procedure similar to monetary input– output analysis and develop an alternative approach to account for primary inputs and waste otherwise not included in the analysis. Based on aggregated input–output tables for Germany, we present numerical examples intended to compare the alternative approaches of physical input–output analysis.

EXIOBASE 3: Developing a Time Series of Detailed Environmentally Extended Multi‐Regional Input‐Output Tables

Environmentally extended multiregional input-output (EE MRIO) tables have emerged as a key framework to provide a comprehensive description of the global economy and analyze its effects on the environment. Of the available EE MRIO databases, EXIOBASE stands out as a database compatible with the System of Environmental-Economic Accounting (SEEA) with a high sectorial detail matched with multiple social and environmental satellite accounts. In this paper, we present the latest developments realized with EXIOBASE 3-a time series of EE MRIO tables ranging from 1995 to 2011 for 44 countries (28 EU member plus 16 major economies) and five rest of the world regions. EXIOBASE 3 builds upon the previous versions of EXIOBASE by using rectangular supply-use tables (SUTs) in a 163 industry by 200 products classification as the main building locks. In order to capture structural changes, economic developments, as reported by national statistical agencies, were imposed on the available, disaggregated SUTs from EXIOBASE 2. These initial estimates were further refined by incorporating detailed data on energy, agricultural production, resource extraction, and bilateral trade. EXIOBASE 3 inherits the high level of environmental stressor detail from its precursor, with further improvement in the level of detail for resource xtraction. To account for the expansion of the European Union (EU), EXIOBASE 3 was developed with the full EU28 country set (including the new member state Croatia). EXIOBASE 3 provides a unique tool for analyzing the dynamics of environmental pressures of economic activities over time.