Environmental Input-output Analysis and Its Application to Multi-region Studies

Abstract

Our world is beleaguered by environmental and socioeconomic problems, such as natural resources degradation, natural hazards, climate change, unemployment, and inequality. Trade supply chains are recognised as important means to address environmental and socio-economic challenges. The world has benefited from trade in many ways, such as promoting economic growth, opening the global market for all countries, and creating jobs. However, trade is likely to increase environmental externalities at both national and global level. Trade can directly affect local environment through overexploitation of natural resources and substantial pollution. One reason for this is that trade is mainly driven by regions’ differing natural resource endowments. Considering the adverse environmental impact of trade and supply chains, as well as their effects on societal and economic development, domestic and international trade supply chains play a key role in addressing regional and global environmental challenges, and thus contribute to achieving Sustainable Development Goals (SDGs) – a global plan adopted by all United Nations (UN) members for a better and more sustainable future.

This thesis applies a quantitative interdisciplinary approach - multiregional input-output (MRIO) analysis to estimate the environmental and socioeconomic impacts of supply chains in three case studies: (i) calculate material footprint in four megacities of China by linking Chinese MRIO to the Global MRIO database Eora, (ii) estimate direct and indirect economic loss and spillovers of desertification in China, as well as the nutrient loss caused by desertification, by applying an improved input-output (IO)-based disaster model, (iii) investigate how Greenhouse Gas (GHG) emissions, land use, and employment will be affected by switching from petroleum-based plastics to bio-based plastics, with an improved IO technique for estimating the substitution effects of bioplastics.