Hybrid Economic-Environmental Accounts by Montini Anna. Mazzanti Massimiliano. Costantini Valeria

Author:Montini, Anna.,Mazzanti, Massimiliano.,Costantini, Valeria.
Language: eng
Format: epub
Publisher: Taylor & Francis (CAM)

where we define mex as the vector of emissions activated by final demand through intermediate imports, calculated using tables at current prices, by delivering industry, as the vector of emissions activated through intermediate imports, valued at previous year prices, by delivering industry, as the vector of emissions that would have been produced if the domestic share of intermediate inputs had remained unchanged, i.e. assuming g as the percentage change of and as the vector of emissions with dy valued at current prices.

The change in the emissions activated through intermediate imports is broken down into four components. The first element in equation (9) shows the change due to the change in prices, the second, the displacement effect, and the last two components explain the change due to other factors which are not linked to delocalization, namely domestic final demand and technology.

Here we are interested in the second component of the above identity which shows the change in total emissions that would have occurred if the domestic intermediate input matrix had remained unchanged (and therefore also the intermediate import matrix).

Results: the Role of Displacement from Decomposition Analyses

Table 6.3 summarizes the results of the two decomposition analyses. It can be noted that actual domestic GHG emissions from production would have grown much more than they did (38.1 MT rather than 15.3 MT) if there had been no displacement of production. Indeed, the change in composition of the sources of supply was such that only around one-fourth of the increase of the emissions avoided due to imports (30.8 MT) was due to changes affecting the total size of the emissions of the vertically integrated industries (8 MT due to the total final demand, intermediate inputs needs and emission intensity of output) whereas the remaining three-fourths may be ascribed to a displacement effect.

Table 6.3 Effect of Displacement of Production on GHG Emissions: Italy, 1999–2007 (million tonnes)

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