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Pb ties09 io_analysis


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Application of the input-output analysis using the ecological footprint for the Regione Pimemonte (Italy) case study.

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Pb ties09 io_analysis

  1. 1. An estimate of the industrial metabolism of the Piedmont region (Italy) using the environmental input-output analysis and the ecological footprint TIES 2009 - Bologna Pancrazio Bertaccini , Marco Bagliani IRES (Istituto Ricerche Economico Sociali) Piemonte IRIS (Istituto di Ricerche Interdisclipinari sulla Sostenibilità)
  2. 2. Input-Output and Environment <ul><li>What's the ecological footprint (EF)‏ </li></ul><ul><li>Input-output analysis (IO): from economy to environment </li></ul><ul><ul><li>Why join IO and EF? </li></ul></ul><ul><li>Two way to join input-output and ecological footprint: </li></ul><ul><ul><li>Estimate EF </li></ul></ul><ul><ul><li>Allocate EF </li></ul></ul><ul><li>Piedmont: the matabolism of a region </li></ul><ul><ul><li>The national footprint account (NFA)‏ </li></ul></ul><ul><ul><li>Attribution of EF to Indrustrial sector </li></ul></ul><ul><ul><li>Redistributing the “weight” of families' consumption </li></ul></ul><ul><ul><li>The Piedmont municipalities </li></ul></ul><ul><li>The R-package EnvIO </li></ul>Pancrazio Bertaccini, IRES Piemonte
  3. 3. What's the Ecological Footprint (EF)‏ <ul><li>The Ecological Footprint “represents the critical natural capital and services requirements of a defined economy or population in terms of the corresponding biologically productive areas.” (Wackernagel et al. 1999) </li></ul><ul><li>A country’s footprint is the total area required to produce, in a sustainable way, the goods and services it consumes and to absorb the waste it generates, using prevailing technology. </li></ul><ul><li>It is a consumption-based indicator because it includes all (and only) the natural capital directly or indirectly used for the supply of the goods and services consumed by the local population, independently of where the production area is located. </li></ul><ul><li>Complementarily to the domestic demand for natural capital provided by the ecological footprint, EFA estimates biocapacity that represents the supply of natural capital calculated from the total area of ecologically productive land. </li></ul>Pancrazio Bertaccini, IRES Piemonte
  4. 4. EF: the basic idea <ul><li>The ecological footprint measures the amount of biologically productive land and water that the human activity requests to the biosphere in order to provide the resources that uses and receive the waste that produces. </li></ul><ul><li>The basic idea is: every unit of material or used energy is related to a defined land extension belonging to one or more ecosystems, that, providing natural services, assures to provide resources or receive wastes as much as needed by the economic system. </li></ul>Pancrazio Bertaccini, IRES Piemonte
  5. 5. Types of land Around 10,3 Mld ha, 68% of the total land (15 Mld ha), are bioproductive lands. Immagine da: Manuale delle Impronte Ecologiche , Edizioni Ambiente, 2002 <ul><li>Crop land </li></ul><ul><li>Grazing land </li></ul><ul><li>Forrest </li></ul><ul><li>Energy land: </li></ul><ul><ul><li>Used to measure the equivalent production of wood needed </li></ul></ul><ul><ul><li>Used to measure the land needed to adsorb the produced CO2 </li></ul></ul><ul><li>Fisheries </li></ul><ul><li>Degraded land (non productive area: house, cave, etc…) ‏ </li></ul>Pancrazio Bertaccini, IRES Piemonte
  6. 6. The input output analysis (1) <ul><li>Leontief introduced the economic input-output analysis during the ’30s to describe the sectorial interaction. </li></ul><ul><li>Input–output analysis is based around a set of sectorally disaggregated economic accounts, where inputs to each industrial sector, and the subsequent uses of the output of those sectors, are separately identified. </li></ul><ul><li>The primary function of input–output analysis is to quantify the interdependence of different activities within the economy (production, consumption and trade). </li></ul>Pancrazio Bertaccini, IRES Piemonte X E C X 3 X 2 X 1 Total Input M M E M C M 3 M 2 M 1 Import L L E L C L 3 L 2 L 1 Added value X 3 E 3 C 3 z 33 z 32 z 31 Sect 3 X 2 E 2 C 2 z 23 z 22 z 21 Sect 2 X 1 E 1 C 1 z 13 z 12 z 11 Sect 1 Total Output Export Household Sect 3 Sect 2 Sect 1 Final Demand
  7. 7. The input output analysis (2) X is the total output z ij are the sectorial exchanges Y is the final demand (C+E) Technical coefficients representing the amount of good from sector i needed to produce directly one unit of good from sector j The Leontiev inverse Matrix, represent the total direct and indirect requirements of any industry j supplied by other industries i within the region in order for industry j to be able to deliver €1 worth of output to final demand Pancrazio Bertaccini, IRES Piemonte …… …… …… … … …
  8. 8. The Impact generalized model (The environmental extension of IO analysis) <ul><li>First teoretycal basis by Leontief 1970. </li></ul><ul><li>Introduces a way to incorporate the “externatlities” (use of resources, or pollution generation in production) into a conventional input-output picture. </li></ul><ul><li>Wants to demonstrate that “the conventional input-output can yield complete replies to some of the fundamental factual question that should be asked and answered before a practical solution can be found to problem raised by the undesirable environmental effect of the modern technology and uncontrolled economic growth”. </li></ul>Pancrazio Bertaccini, IRES Piemonte
  9. 9. The Impact generalized model (The environmental extension of IO analysis) Pancrazio Bertaccini, IRES Piemonte <ul><li>The vector that describe the level of produced impact is defined considering the amount of produced good for each sector (X) : </li></ul><ul><li>So that: </li></ul><ul><li>when we substitute it with the standard formulation: </li></ul>Matrix of the coefficients of Total Impact <ul><li>If we consider the matrix of use of resources (or pollution emission) as a matrix of technical coefficients of direct impact: </li></ul>
  10. 10. EF + IO Pancrazio Bertaccini, IRES Piemonte X E C X 3 X 2 X 1 totInput M M E M C M 3 M 2 M 1 Import L L E L C L 3 L 2 L 1 AddVAL X 3 E 3 C 3 z 33 z 32 z 31 Sect 3 X 2 E 2 C 2 z 23 z 22 z 21 Sect 2 X 1 E 1 C 1 z 13 z 12 z 11 Sect 1 TotOut Export Household Sect 3 Sect 2 Sect 1
  11. 11. Allocation of the ecological footprint <ul><li>Associate NFA Ecological Footprints of production and imports with industrial sectors </li></ul><ul><li>Calculate direct and indirect requirement matrix </li></ul><ul><li>Calculate direct and indirect intensity vectors </li></ul><ul><li>Calculate ecological footprint of the final demand cathegory </li></ul><ul><li>Disaggregate final demand categories </li></ul>The National Footprint Account is provided by the Global Footprint Network The Input-output Tables for Italy are provided by ISTAT Wiedmann, T., Minx, J., Barrett, J. and Wackernage, M. (2006) Allocating Ecological Footprints to Final Consumption Categories with Input-Output Analysis. Ecological Economics, 56 (1). pp. 28-48. ISSN 0921-8009
  12. 12. The National Footprint Account (NFA)‏ Source: The Global Footprint Network - 2005 (GFN)‏ Domestic Production: EF distributed to sectors using the CO 2 emission factors Imports: EF distributed to sectors using the embodied energy of goods Cropland, Pasture, Fisheries and forest: EF assigned to the sector for Agriculture, pasture, fish and forest Built-up: EF distributed depending on the factory size
  13. 13. Pancrazio Bertaccini, IRES Piemonte Redistribution of EF Agriculture, Forestry, and Fisheries Production of energy Metal Product Manufacturing Food industries BEFORE AFTER
  14. 14. How to allocate the EF to final consumption categories COICOP Classification of Individual COnsumption by Purpose (international standard provided by the United Nation) Families Expenditure for Households Consumption X E C X 3 X 2 X 1 totInput M M E M C M 3 M 2 M 1 Import L L E L C L 3 L 2 L 1 AddVAL X 3 E 3 C 3 z 33 z 32 z 31 Sect 3 X 2 E 2 C 2 z 23 z 22 z 21 Sect 2 X 1 E 1 C 1 z 13 z 12 Z 11 Sect 1 TotOut Export Househ. Sect 3 Sect 2 Se1 Food Vehicles Furniture Etc …
  15. 15. Portion of footprint for different household Food Electricity Vehicle fuel Pancrazio Bertaccini, IRES Piemonte  Averaged per capita Ecological footprint for the Italian inhabitant: using the ecological footprint related to a sector product  We can obtain the coefficients related to 1€ of production that makes us able to estimate the amount of the products produced by that sector bought in any subregional area where expenditure data are available
  16. 16. The Piedmont case study (2001) Vehicles fuel Methane Electricity Centrally heated Maintenance Purchase of vehicles Pancrazio Bertaccini, IRES Piemonte Using the coefficients for 1€ of sector production we can obtain a detailed break-down of the Piedmont inhabitant consumption based on the real expenditure Food
  17. 17. Piemonte's Municipalities Pancrazio Bertaccini, IRES Piemonte
  18. 18. Conclusions <ul><li>It’s a rigorous way to analyze an economic system environmental impact, allowing a quite deep level of detail </li></ul><ul><li>Provide results that are generally comparable because the wide production of NFA and IO Tables. </li></ul><ul><li>Allow to analyze sub-regions even where detailed data are not available </li></ul><ul><li>Allow to estimate direct and indirect ecological footprint assigned to consumer activity </li></ul>
  19. 19. Limits <ul><li>Aggregates different product that could have far different environmental impact </li></ul><ul><li>Do not consider (so far) import and export of real land </li></ul><ul><li>The use of 27 industrial sectors reduce the separation between the different goods </li></ul>