Difference between revisions of "Environmental Impact"
From Open Risk Manual
Wiki admin (talk | contribs) |
Wiki admin (talk | contribs) (→Formula) |
||
Line 17: | Line 17: | ||
:<math> | :<math> | ||
\begin{align} | \begin{align} | ||
− | + | C_{j} & = s_{j} \times (I - A)^{-1} \times y | |
\end{align} | \end{align} | ||
</math> | </math> | ||
Line 23: | Line 23: | ||
where: | where: | ||
− | * <math>s_{j}</math> is a vector of | + | * <math>s_{j}</math> is a vector of impact intensities per sector |
− | * <math> | + | * <math>C_{j}</math> is the total impact for given final demand y |
== Further Resources == | == Further Resources == |
Revision as of 17:42, 16 November 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 activities.
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
- 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:
- is a vector of impact intensities per sector
- is the total impact for given final demand y