Difference between revisions of "Environmental Impact"
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== Approach == | == Approach == | ||
| − | Each | + | Each MRIO's environmental CBA result can be understood simplistically as a product of three variables: |
| − | of production, and a consumption bundle Y describing the composition of final consumption. The total CBA footprint C is a function of these three variables: C = f (F, Z, Y). | + | * a flow matrix Z describing the economic structure |
| + | * an environmental stressors matrix (or ‘satellite account’) F describing the per-sector direct environmental impacts of production, and | ||
| + | * a consumption bundle Y describing the composition of final consumption. | ||
| + | |||
| + | The total CBA footprint C is a function of these three variables: <math>C = f (F, Z, Y)</math>. | ||
In addition to the output effects, implications can be derived for the value-added components and the satellite systems. Various production-induced effects can be calculated by multiplying with the coefficients s | In addition to the output effects, implications can be derived for the value-added components and the satellite systems. Various production-induced effects can be calculated by multiplying with the coefficients s | ||
| Line 18: | Line 22: | ||
where | where | ||
| − | * <math>s_{j}</math> Vector of specific satellite | + | * <math>s_{j}</math> Vector of specific satellite accounts |
* <math>bs_{ij}</math> Vector of coefficients for satellites. | * <math>bs_{ij}</math> Vector of coefficients for satellites. | ||
| + | |||
| + | == Further Resources == | ||
| + | * [https://www.openriskacademy.com/mod/page/view.php?id=800 Crash Course on Input-Output Model Mathematics] | ||
== References == | == References == | ||
Revision as of 13:19, 18 September 2023
Definition
Environmental Impact (or Environmental Stressor) in the context of an Input-Output Model denotes an extension of the basic IO model via a system of satellite accounts that provides insights into the environmental footprint of economic activity
Approach
Each MRIO's environmental CBA result can be understood simplistically as a product of three variables:
- a flow matrix Z describing the economic structure
- an environmental stressors matrix (or ‘satellite account’) F describing the per-sector direct environmental impacts of production, and
- a consumption bundle Y describing the composition of final consumption.
The total CBA footprint C is a function of these three variables: 
.
In addition to the output effects, implications can be derived for the value-added components and the satellite systems. Various production-induced effects can be calculated by multiplying with the coefficients s
Formula
where
-
Vector of specific satellite accounts -
Vector of coefficients for satellites.
