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Title: Environmental Input-Output Analysis: Emissions Embodied in Trade and Structural Decomposition Analysis
Authors: SU BIN
Keywords: Input-output analysis; Emissions embodied in trade; Structural decomposition analysis; Aggregation issues; Feedback effects; Attribution analysis
Issue Date: 7-Sep-2011
Citation: SU BIN (2011-09-07). Environmental Input-Output Analysis: Emissions Embodied in Trade and Structural Decomposition Analysis. ScholarBank@NUS Repository.
Abstract: With the growing concern about climate change and related energy and environmental issues, the environmental input-output analysis (EIOA) has become an important tool in climate policy analysis. Lately, two popular and important areas in EIOA are issues related to emissions embodied in trade (EET) and structural decomposition analysis (SDA). EET studies allow us to understand the embodied emissions flows through international trade and the resulting ?carbon leakage?. This information is useful for attributing a country?s responsibility to global emissions. Through SDA studies, the driving forces of the historical changes of an aggregate indicator, such as carbon dioxide emissions, can be evaluated and quantified. This thesis focuses on a number of methodological and application issues in EET and SDA under the EIOA framework. First, a literature survey is presented on studies published in the last one to two decades in each of these two areas. Following that, the first part of the thesis focuses on EET studies. Issues on sector aggregation in EIOA are analyzed and next the possible effects of sector aggregation on estimating a country?s emissions embodied in trade and their practical implications are analytically and empirically investigated. The issues of spatial aggregation are then analyzed and a ?hybrid emissions embodied in trade? approach for regional emission studies is proposed. The impacts of spatial aggregation on EET emission estimates are also evaluated. With increasing interest in using multi-regional input-output (MRIO) models by researchers, a new method called the ?stepwise distribution of emissions embodied in trade? is proposed to reveal the mechanism of feedback effects in multi-region EET studies. The indirect trade balance of emissions from bilateral trade between any two countries may be derived using the proposed method. The second part of the thesis deals with SDA studies applied to energy and emissions. The recent methodological developments are first studied, which show a shift towards using SDA methods that are ideal in decomposition. Arising from this development, four such methods are compared and guidelines on method selection are provided. Following that, a comprehensive comparison between SDA and index decomposition analysis (IDA) based on the latest available information is conducted. Since three aggregation issues are involved in SDA studies, the impacts on SDA results of the third aggregation, namely temporal aggregation (on top of sector aggregation and spatial aggregation) is examined. The Fisher index and its extensions have been used by researchers in multiplicative SDA but the results derived are only given in the aggregate form. An attribution analysis of the generalized Fisher index decomposition in SDA is proposed, where the contributions of the individual components at a finer level can be quantified. Finally, a summary of the main findings of our studies is given and suggestions are made for future research.
Appears in Collections:Ph.D Theses (Open)

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