Difference between revisions of "Environmental Impact"
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+ | == 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 consumption-based accounts (CBA) result can be understood as a product of three variables: | ||
+ | * a flow (transactions) matrix Z describing the economic structure between various production sectors | ||
+ | * 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 ([[Final Demand]]). | ||
+ | |||
+ | |||
+ | The total footprint C is a function of these three variables: <math>C = f (F, Z, Y)</math>. | ||
+ | |||
+ | == Formula == | ||
+ | |||
+ | :<math> | ||
+ | \begin{align} | ||
+ | C & = F \times (I - A)^{-1} \times Y | ||
+ | \end{align} | ||
+ | </math> | ||
+ | |||
+ | where: | ||
+ | |||
+ | * <math>F</math> is a vector of impact intensities per sector | ||
+ | * <math>C</math> is the total impact for given final demand Y | ||
+ | |||
+ | == Further Resources == | ||
+ | * [https://www.openriskacademy.com/course/view.php?id=70 Crash Course on Input-Output Model Mathematics] | ||
+ | * [https://www.openriskacademy.com/course/view.php?id=64 Introduction to Input-Output Models using Python] | ||
+ | |||
+ | == References == | ||
+ | <references/> | ||
+ | |||
+ | [[Category:EEIO]] | ||
+ | |||
+ | {{#set:Has Formula = HAS_FORMULA}} | ||
+ | |||
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Latest revision as of 14:33, 21 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 consumption-based accounts (CBA) result can be understood as a product of three variables:
- a flow (transactions) matrix Z describing the economic structure between various production sectors
- 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 (Final Demand).
The total footprint C is a function of these three variables: .
Formula
where:
- is a vector of impact intensities per sector
- is the total impact for given final demand Y