Import Similarity

Definition

Import Similarity denotes a common assumption in the construction of a Multi-Regional Input-Output Model that asserts that imported goods or services are produced with the domestic (and known) production technology. The import assumption has also been called “autonomous regions” by Lenzen et al., 2004 and “mirrored economy” by Strømman and Gauteplass, 2004.

Issues and Challenges

The assumption greatly reduces data requirements, but may lead to large errors. Most IO studies of environmental issues apply the import assumption and so it is likely that many of these studies incorrectly calculate the emissions associated with the production of imports.