Difference between revisions of "Environmental Impact"
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== Definition == | == 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 | + | '''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 == | == Approach == | ||
| − | Each MRIO's environmental CBA result can be understood | + | Each MRIO's environmental consumption-based accounts (CBA) result can be understood as a product of three variables: |
| − | * a flow matrix Z describing the economic structure | + | * 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 | + | * 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. | + | * 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 == | == Formula == | ||
| Line 16: | Line 15: | ||
:<math> | :<math> | ||
\begin{align} | \begin{align} | ||
| − | + | C & = F \times (I - A)^{-1} \times Y | |
\end{align} | \end{align} | ||
</math> | </math> | ||
| − | where | + | where: |
| − | * <math> | + | * <math>F</math> is a vector of impact intensities per sector |
| − | * <math> | + | * <math>C</math> is the total impact for given final demand Y |
== Further Resources == | == Further Resources == | ||
| − | * [https://www.openriskacademy.com/ | + | * [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 == | ||
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
