Difference between revisions of "Environmental Impact"

From Open Risk Manual
(Formula)
 
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== Approach ==
 
== Approach ==
Each MRIO's environmental CBA result can be understood simplistically as a product of three variables:  
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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
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* 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.  
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* a consumption bundle Y describing the composition of final consumption ([[Final Demand]]).  
  
  
The total CBA footprint C is a function of these three variables: <math>C = f (F, Z, Y)</math>.
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The total 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
 
  
 
== Formula  ==
 
== Formula  ==
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:<math>
 
:<math>
 
\begin{align}
 
\begin{align}
C_{j} & = s_{j} \times (I - A)^{-1} \times y
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C & = F \times (I - A)^{-1} \times Y
 
\end{align}
 
\end{align}
 
</math>
 
</math>
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where:
 
where:
  
* <math>s_{j}</math> is a vector of impact intensities per sector
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* <math>F</math> is a vector of impact intensities per sector
* <math>C_{j}</math> is the total impact for given final demand y
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* <math>C</math> is the total impact for given final demand Y
  
 
== Further Resources ==
 
== Further Resources ==

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: C = f (F, Z, Y).

Formula


\begin{align}
C & = F \times (I - A)^{-1} \times Y
\end{align}

where:

  • F is a vector of impact intensities per sector
  • C is the total impact for given final demand Y

Further Resources

References