Ecological Economics

Lecture 13
Allocating Carbon Responsibility
7th July 2010

Tiago Domingos
Assistant Professor
Environment and Energy Section
Department of Mechanical Engineering

Collaboration: Alexandra Marques, João Rodrigues

alexandra.marques@ist.utl.pt; joao.rodrigues@ist.utl.pt
Our approach: Consumer responsibility
Rodrigues et. al. (2006)1

2 Imports Exports
REGION

VALUE ADDED FINAL DEMAND

DIRECT
EMISSIONS
Responsibility Responsibility
embedded in imports embedded in exports
REGION

CONSUMER
RESPONSIBILITY

Responsibility
CONSUMER + Responsibility = DIRECT +
RESPONSIBILITY in exports EMISSIONS in imports

1
Rodrigues, J, Domingos, T, Giljum, S, Schneider, F. Designing an Indicator of Environmental Responsibility. Ecological Economics 59, 2006: 256-266.

World Carbon Responsibility December 13, 2010

Multi regional input/output
Calculation of countries’/world regions’ carbon responsibilities.
3
With a full environmental multi-regional input/output (MRIO) model,
based on the GTAP 6 database (2001).

REGION
1 EXPORTS

GOVERNMENT

HOUSEHOLDS
INVESTMENT
IO TABLE
87 regions
x (...)
57 sectors IMPORTS
REGION
87
IO TABLE

LAND

UNSKILLED LABOR

SKILLED LABOR

CAPITAL

NATURAL RESOURCES

World Carbon Responsibility December 13, 2010

World regions
4 DEVELOPED EASTERN
(inc. Japan, Hong EUROPE
Kong, Singapore)
ASIA

AFRICA

LATIN FOSSIL FUEL EXPORTERS

AMERICA - Australia - Canada
- Venezuela - Middle East
- South Africa - Russian Federation
- (…)

RESPONSIBILITY
(MTonCO 2)
DIRECT INT. TRADE
World 24,750 4,996
A+D+F 21,720 3,360

World Carbon Responsibility December 13, 2010

Transfer of consumer responsibility in
inter-regional trade (MtonCO2)
5
5,549 4,814
190 (1.65)
ASIA FOSSIL FUEL
4,883 (exporters) EXPORTERS 3,980
307 (1.91)

11,286
343 (0.68) 414 (0.70)
DEVELOPED
1,072 (1.58) (importers) 1,034 (1.47)

12,857

CONSUMER _ DIRECT Responsibility _ Responsibility

=
RESPONSIBILITY EMISSIONS in imports in exports

World Carbon Responsibility December 13, 2010

Consumer responsibility trade balance
(MtonCO2)

World Carbon Responsibility December 13, 2010

 Our approach: Producer responsibility
Rodrigues et. al. (2006)1

Payment for Payment for

7 imports exports
REGION

PAYMENT TO FINAL DEMAND

PRIMARY INPUTS
DIRECT
EMISSIONS
Responsibility embedded in Responsibility embedded in
payment for imports payment for exports
REGION

PRODUCER
RESPONSIBILITY

Responsibility Responsibility
PRODUCER + in payment for = DIRECT + in payment for
RESPONSIBILITY imports EMISSIONS exports
1
Rodrigues, J, Domingos, T, Giljum, S, Schneider, F. Designing an Indicator of Environmental Responsibility. Ecological Economics 59, 2006: 256-266.

World Carbon Responsibility December 13, 2010

Transfer of producer responsibility in
inter-regional trade (MtonCO2)
8
5,549 4,814
378 (2.36)
ASIA FOSSIL FUEL
4,913 (exporters) 128 (1.11) EXPORTERS 5,251

11,286
283 (0.42) 675 (0.96)
DEVELOPED
648 (1.29) (importers) 661(1.12)

11,763

PRODUCER _ DIRECT = Responsibility _ Responsibility

RESPONSIBILITY EMISSIONS payment for payment for
exports imports
World Carbon Responsibility December 13, 2010
Producer responsibility trade balance
(MtonCO2)

World Carbon Responsibility December 13, 2010

 Summing up...
10
Producer _ Direct
Responsibility Emissions

Consumer _ Direct
Responsibility Emissions

(MtonCO2)

World Carbon Responsibility December 13, 2010