Newsletter
Number 45, August 2020

Welcome from the Editor

In this issue• Welcome from the Editor….………….…..1• New IIOA Newsletter Editor……………..2• Online sessions for young

Researchers………………………………..3

Dear IIOA member,• Sir Richard Stone Prize for the ESR
I am pleased to release the latest issue of the International Input-Output Newsletter. I thank allcontributors.
This is my last issue as IIOA Newsletter Editor. We are pleased to present the new Editor.
This issue contains information about the Online sessions for young researchers, Sir Richard
Stone Prize for the ESR publications in 2017 and 2018, Latest ESR articles, Highlights in
Journals, chapter books, and databases.
You can also find Call for Web Conferences and Workshop.

I hope you enjoy it! Any feedback, comments or suggestions are greatly appreciated. I
also welcome contributions to future issues.

publications in 2017 and 2018……..6• Published papers and books
in IOA and related methods…………..9- Latest ESR articles……..………………..9- Highlights in journals…………….……18
Databases…………………………………….24• Events…………………………………….……25- Next workshop………..………….….....25- Next conferences……..…………........25

Vinicius de Almeida ValeIIOA Newsletter Editor
Federal University of Parana, Brazil
Newsletter E-mail: newsletter@iioa.org
Personal E-mail: vinicius.a.vale@gmail.com

Would you like to contribute to the IIOA
newsletter?
Contact us newsletter@iioa.org
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Newsletter
Number 45, August 2020

New IIOA Newsletter Editor

Three years ago, I took over as Editor of the Newsletter with themission to publish the issues regularly. Mission accomplished! This is
my 13th published issue.
During this period, I have had the help of several colleagues. So
many, I simply thank all of them as a group. I learned a lot.
I hope you have enjoyed the issues. I also hope the Newsletter hasbrought you all IIOA members together, in some way.
Starting the next issue, a great personal friend of mine during mytime at from REAL at UIUC will take over as Editor. The IIOA
Newsletter will continue to be in good hands.

I am delighted to take the baton from Vinicius and to be the next IIOA
Newsletter Editor. In these times when we are all distant from one
another and sadly can’t celebrate our annual meeting, the Newsletter
becomes an even more useful linkage between us members and the
Association. I will try to continue the excellent work of mypredecessor over recent years. Nonetheless, I intend to introduce
some new ideas that I hope you will enjoy.
Warm hugs and keep sending your news to the IIOA newsletter!
André Carrascal Incera
City-REDI/WM-REDI, Birmingham Business School
University of Birmingham, U.K.

Keep contributing!

I hope to be actively involved in the IIOA!
Hugs!
Vinicius de Almeida Vale
Federal University of Parana, Brazil

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Newsletter
Number 45, August 2020

Online sessions for young researchers
Unfortunately, the International Input-Output
Conference in Kuala Lumpur had to be
postponed due to the Covid-19 pandemic. To
give young researchers an opportunity topresent their work and to get some feedbackon their current work, the IIOA Council decided
to organize a small-scale online initiative
during the first week of July (the week in which
the conference would have taken place). It
contained
fiveorganized
sessions. The
speakers and titles of their presentations are
identified below.
The organizers (Satoshi Inomata, Shigemi
Kagawa and Bart Los) invited all researchers
who had (i) submitted a paper to the Leontief
Prize competition, (ii) wanted to be included in
the Development Programme or (iii) had
applied for IIOA travel grants. Of the 48 invitedresearchers, 18 accepted the invitation. To be
sure that all presenters could attend without
being deprived from sleep, the speakers wereassignedto
Oceania/Asia/Europe
andEurope/Americas sessions (unfortunately, we
had no African speakers). So-called ‘caretakers’
played a pivotal role in the organization: one
speaker coordinated the date and the time ofthe session with the other speakers and made surethat an online video-calling platform would be usedthat would suit all speakers. The organizers thenmass-mailed the IIOA-members to attend thesessions as members of the audience. In order toavoid unnecessary internet connection disruptions,the total number of participants per session was
capped at eight. This created a cordial atmosphere,
to the extent possible in an online setting. Allsessions were full, although misinterpretations withrespect to time zones caused a small number oflatecomers (but this happens at physicalconferences as well…). The caretakers had also
ensured that all participants had been sent theslides and papers beforehand, to minimize the‘damage’ in case of disruptions.
The sessions went well. Internet-related problems
were very minor, and session caretakers allreported
substantial
interaction
betweenpresenters and members of their audiences. As
organizers we also learned a lot along the way. We
received a number of useful suggestions for
improvement. Nobody knows how we will gather inthe future. We can only hope, it will be possible toorganize physical meetings again. Still, it is likelythat online events will remain an importantelement of our activities, so learning about ways tomake these happen was helpful. The prime
objective, however, was to support young
researchers. This worked out well, to a large extent
due to the activities of the session caretakers:
Oliya
Maxudova(Ritsumeikan
Asia
Pacific
University), Carolina Silva Ribeiro (Federal
University of Bahia), Eduardo Sanguinet (PontificalCatholic University of Rio Grande do Sul/Catholic
University of the North), Maksud Bechkanov (Bonn
University)
andWannaphong
Durongkaveroj(Australian National University).
Thanks a lot!
Bart Los

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Session 1
Kehan HE (University College London), "Improving Input-Output Model forTime Lagged Analysis – a Big Data Approach"
Wannaphong
DURONGKAVEROJ(Australian
National
University),"Developmental Gains from Joining Global Production Networks: Does
Domestic Value Added Matter?"Yu ZHANG (Chinese Academy of Sciences), "Impact of Non-Tariff Barriers:
Evidence from China"
Session 2

Maksud BECHKANOV (Bonn University), "An Economy-wide Assessment ofAgricultural Productivity Change Effects on Virtual Water Trade Flows"
Peilin CHEN (Renmin University of China), "World Embodied Energy
Accounting with Capital Stock Change"

Yixin HU (Southern University of Science and Technology), "Fluvial Flood
Footprint Assessment under Climate Change: An Application to Ghana“Session 3

Guilherme CARDOSO (Federal University of Minais Gerais), "Fiscal Austerityin Brazil: Impacts on Household Income and Economic Activity"
Patiene PASSONI (Federal University of Rio de Janeiro), "Input-Output Modelin the Context of Relative Prices: the Implication of Deflation Methods forTechnical Coefficients“
Simone GRABNER (Gran Sasso Science Institute), "Interregional InputOutput Linkages and Relatedness as Drivers of Regional Diversification:
Evidence from United States Counties"

Eduardo SANGUINET (Pontifical Catholic University of Rio Grande do Sul/
Catholic University of the North), "Uneven Integration in Domestic andGlobal Value Chains: the Role of Functions in Value Added Trade in
Brazilian Regions“
Session 4
Keitaro MAENO (Kyushu University), "The Role of Market Shares ofCommodities and Carbon Footprint of Nation"

Koshiro MATSUI (Kyushu University), "Global Warming and Lifecycle
CO₂Emissions from Electricity Consumptions at Prefecture Level"
Man LI (Shandong University), "The Role of China's Main Blue Economy in
Tackling Climate Change: An Input-Output Analysis"

Oliya MAXUDOVA (Ritsumeikan Asia Pacific University), "The Impact of the
Mining Industries Sector of Tajikistan on Economic, Environmental andSocial Development“Session 5
Andressa PROQUE (Federal University of Juiz de Fora), "Fuel tax, Cross
Subsidy and Transport: Assessing the Effects on Income andConsumption Distribution in Brazil"
Anjali SHARMA (University of Maryland), "An Input-Output based Analysisof the Labor Impacts of Clean Energy Transitions in India"
Carolina SILVA RIBEIRO (Federal University of Bahia), "Effects of Wind
Energy Input on the Sectors of Economic Activity in the Semiarid
Region of Bahia"

Heran ZHENG (Norwegian University of Science and Technology NTNU),"Targeted City Network to Reduce Carbon Footprint for 309 Chinese
Cities"4

Newsletter
Number 45, August 2020

Online sessions for young researchers

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Number 45, August 2020

Sir Richard Stone Prize for the ESR publications in 2017 and 2018
Sir Richard Stone Prize is awarded every other year for the best
paper(s) that was submitted and accepted for publication in
IIOA's journal Economic Systems Research in the twoconsecutive volumes. The prize is donated by Francis & Taylor,
the Publisher of the journal. (See the list of past awardees here)

Selection procedure:This year, the jury has decided to award the prize to thefollowing two papers of exceptional qualities. Congratulations!!

- had at least one vote from all jury members;

Jury member of Sir Richard Stone Prize, 2020

The final decision

Randall Jackson (Chair)

The first round short-listing to four papers:
Out of all papers published in ESR in 2017 and 2018, the pool of
papers was shortlisted to four finalists, which- was selected #1 by one of jury members

The four papers were given rankings, from which the top two papers
were selected as winners.

Clopper Almon
Francesca Severini
Kirsten Svenja Wiebe
Haiyong Zhang

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Number 45, August 2020

Why has China’s vertical specialization declined?
Yuwan Duan, Erik Dietzenbacher, Xuemei Jiang, Xikang
Chen & Cuihong Yang
Economic Systems Research, 30:2, 178-200, 2018

Applicability of a spatial computable generalequilibrium model to assess the short-term economic
impact of natural disasters
Yoshio Kajitani & Hirokazu Tatano, Economic Systems
Research, 30:3, 289-312, 2018

Review summary:This paper analyzes China’s changing role in Global Value Chains by
estimating its annual vertical specialization shares from 2000 to 2012.
The authors provide an excellent example of the versatility and utility ofstructural decomposition analysis in an adaptation of the method to anassessment of the relative importance of alternative factors that have
led to the decline of vertical specialization in China. Their analysis
decomposes the changes in China's vertical specialization share into theeffects of 14 components, identifying the substitution of imported
intermediates with domestically produced intermediates” as “the main
driver for China's declining vertical specialization share.” Starting fromthe idea driving the research to the comments of its results, the allcontent is very clear and of a high level, especially regarding thedescription of the dataset and the structural decomposition approach.
Their "results imply that improving the quality and competitiveness ofdomestic intermediates may be an efficient way to upgrade a country's
role in" global value chains. It also provides important implications forother development countries to actively move up the GVCs. In selecting
this paper for the award, the jury emphasized the value of ademonstration of the flexibility of spatial decomposition analysis inapplication to new problem domains.

Review summary:In this paper, the authors provide an important contribution to theliterature on the choice of and effectiveness of disaster impacts
assessments approaches, with a specific focus on the role of estimatedelasticities of substitution relative to the analytical timeframe. They
quite effectively situate their research within the context of therelevant literature, and provided an exceedingly clear and concise
description of the salient aspects of their model. their work supports
the conclusion “that plausible settings can make CGE models suitablefor disaster impact analysis, at least for short-run cases.” The jury
deemed this paper to be a significant contribution to the model
validation literature.

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Messages from awardees
Yuwan Duan
Associate Professor
School of International Trade and Economics, Central University of
Finance and Economics“We are overwhelmed with gratitude to have been selected to receive
the Sir Richard Stone Prize. We are deeply honored. This award is ahigh degree of recognition of our paper, and also strengthens my
confidence in devoting my rest of life to scientific research. I would liketo express my sincere gratitude to those who helped us in this paper
and my research career. I also hope that this recognition of our work
can serve as an inspiration to others in the field. This paper examinedthe causes and implications of the decline in Chinese verticalspecialization in recent years. We find that the substitution of imported
intermediates with domestically produced intermediates was the main
driver, which suggests an upgrade of China's role in the Goble Value
Chain. However, if the study was for this year, then COVID-19 shouldbe the main culprit for the decline in global vertical production. I hopethat we humans can eliminate the virus as soon as possible and wish
that everyone will be able to ride out this epidemic safely andhealthily.”

Yoshio Kajitani
Professor,
Faculty of Engineering and Design, Kagawa University“We are very honored to receive the Sir Richard Stone Prize. The
awarded paper is an outcome of long-term discussions not only
between the authors but also with many experts of I-O and CGE
modelling. Especially, a series of sessions on disaster impact analysis
in the IIOA annual meetings gave us precious occasions to meet withthe specialists in this field. We hope the paper replies to many ofpractical questions raised in the sessions, in applying interindustry
types of modeling to natural disasters. Our special thanks are due toProfs/Drs. Stephanie Chang, Yasuhide Okuyama, Jan Oosterhaven,
Adam Rose, Albert Steenge and many others for the discussions to
our presentations and Prof. Michael Lahr and anonymous reviewers
for constructive feedbacks and supports at the review process. We
also greatly appreciate the encouragements and insightful commentsfrom Prof. Geoffrey Hewings and Dr. Nori Yamano, and Prof. Norio
Okada, who also gave us the chance to step in this research field(engineering-economics modeling) almost 20 years ago.
While appreciating many good lucks, we cannot help thinking that theCovid-19 is challenging us and changing economic systems. We
strongly hope the evidence-based approach and economic impact
modeling contribute to better policy making.”

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Number 45, August 2020

Published papers and books in IOA and related methods

Latest ESR articles
Economic Systems Research
Journal of the IIOA
Volume 32, Issue 3, 2020
Ferreira, J. P., Lahr, M., Ramos, P. andCastro, E. Accounting for global migrant
remittances flows. Economic Systems Research,
32(3): 301-317.
Migrant remittances are important to somecountries. According to the World Bank, they
comprise more than 30% of the GDP of
Kyrgyzstan, Tonga, Tajikistan, Haiti and Nepal.
Compared to official development aid or foreign
direct investment, remittances have lately
become a prime income stream for lessdeveloped nations. In this paper, we analyze thenet spillover and feedback effects from theconsumer demand generated in migrants’ homecountries. We use World Bank estimates ofremittances and the World Input-Output
Database (WIOD) for the investigation with socalled ‘hypothetical insertion’ as the tool ofchoice. We find that even some developed
nations, like the US, likely benefit fromremittances (the largest global path forremittances is that from the US to Mexico), butthat not all do (e.g. Canada does not). We stop
short of making strong policy recommendations.
Instead, we suggest that more attention be paid
to the veracity of remittance estimates.
Giammetti,
R.
Tariffs,
domestic
importsubstitution and trade diversion in input-output
production networks: an exercise on Brexit.
Economic Systems Research, 32(3): 318-350.
In this paper we employ the World Input–Output
Database to develop a multi-sector inter-country
model that allows us to identify the channels
through which the trade effects of Brexit would
propagate. The inclusion of global value chains
and indirect Brexit effects in the model leads toestimates that diverge with the results of the main
literature. Indeed, we found that Brexit could berisky and costly not only for the UK but also formany EU countries. Furthermore, we develop asecond model and present the first empiricalanalysis on the consequences of domestic importsubstitution and trade diversion policies in Input–
Output schemes. We found that allowing sectors
and countries to partly substitute foreign products,
leads to significantly lower losses for both macroregions: the UK and EU27 would lose, at worst,
the 0.28 and 0.5 percent of value-added,
respectively.

Attary, N., Cutler, H., Shields, M. and van deLindt, J. W. The economic effects of financial relief
delays following a natural disaster. Economic
Systems Research, 32(3): 351-377.
In the U.S. the economic damages of natural
disasters have increased substantially over time.
While private insurance payouts tend to arrive
relatively quickly, federal recovery monies areoften allocated unevenly, with some communities
waiting years to receive previously designatedfunds. We examine the costliness of delay bylinking an economic model of the Joplin, Missouri
economy to a civil engineering model that
replicates the damage from a tornado thatdevastated the community in 2011. Building
damage estimates from the natural hazard andengineering models are translated into capitalstock losses, which subsequently impact the local
economy through lost output. We examine
several different recovery paths, with a focus on
differences in the timing of recovery assistance.
Our results show that delaying financial
assistance can have important, irretrievable
adverse outcomes in the short run.

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Number 45, August 2020

Tiziano, D., Tuninetti, T., Laio, F. and Ridolfi,
L. Tools for reconstructing the bilateral trade
network: a critical assessment. Economic
Systems Research, 32(3): 378-394.
This study critically assesses the performancesof the Gravity Model (GM) and of the RAS
algorithm for the bilateral flow intensity
estimations and link prediction. The mainnoveltyistheapplicationofthese
methodologies to reconstruct the network
topology
withaminimum
amountofinformation. Moreover, we implement a multilayer analysis to provide a comprehensive androbust framework, by testing several foodcommodities, over the period 1986–2013. The
main outcomes suggest that the RAS algorithm
outperforms the Gravity Model in theestimations of the bilateral trade flows,
importantly
guaranteeing
thebalanceconstraints (i.e. global import equals global
export), while GM generates lower relative
errors, but it underestimates total global flows.
Both RAS and GM can be applied to accurately
recoverthe
networkarchitecture.
The
implications of our study encompass a widerange
ofapplications:systemic-risk
assessment, creation of new databases, andscenario analyses to support policy decisions.

Miroudot, S. and Ye, M. Multinational production
in value-added terms. Economic Systems Research,
32(3): 395-412.

Tsionas, M. G. Bayesian input–output table
update using a benchmark LASSO prior.
Economic Systems Research, 32(3): 412-427.

Micro-level evidence has emphasised that firmsthat produce across countries are responsible fora large share of international exchanges ofgoods, services, capital and knowledge. At theaggregate level, quantitative studies that look at
multinational production generally rely on theconcept of sales of foreign affiliates, which is agross concept that includes the value ofintermediate inputs. In the case of trade, theliterature has recently shifted to a value-added
approach that can distinguish in exports thecontribution of the different economies supplying
inputs. In this paper, we propose a frameworkthat decomposes value-added in domestic sales
in order to trace its origin and remove any
double-counting. We find that an intercountry
input–output table split on ownership can yieldan analysis of activities of foreign affiliates ofmultinational firms in value-added terms.

We propose updating a multiplier matrix subject
to final demand and total output constraints,
where the prior multiplier matrix is weighted
against a LASSO prior. We update elements of the
Leontief inverse, from which we can derive
posterior densities of the entries in input–output
tables. As the parameter estimates required by
far exceed the available observations, many zero
entries deliver a sparse tabulation. We addressthat problem with a new statistical model wherein
we adopt a LASSO prior. We develop novel
numerical techniques and perform a detailedMonte Carlo study to examine the performance ofthe new approach under different configurationsof the input–output table. The new techniques areapplied to a 196 × 196 U.S. input–output table for
2012.

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Cai, J. and Leung, P. A note on linkage between
gross value added and final use at the industry
level. Economic Systems Research, 32(3): 428437.
Gross value added (GVA) is a common indicatorof an industry/sector’s economic performance.
While an economy’s total GVA is always equal to
its total final use, an individual industry/sector’s
GVA is usually not equal to its final use. Yet an
accounting identity between an industry/sector’s
GVA
and
the
final
use
of
multipleindustries/sectors can be established by a grossvalue added-final use (GVA-FU) matrix. This
paper derives the GVA-FU matrix in the Leontief
demand-driven model and its equivalence in the
Ghosh supply-driven model and interprets thematrix from different perspectives. The GVA-FU
matrix can help policymakers and practitioners
better understand an industry/sector’s percentage
of gross domestic product (GDP) – the underlying
measure behind the United Nations Sustainable
Development Goals (SDGs) Indicator 14.7.1 –from the demand-side perspective and facilitate
its proper use for policy and planning. The GVAFU matrix can become a standard component oftheinput–output
apparatusformultipleapplications.

Economic Systems Research
Journal of the IIOA
Latest articles (up to 27-Jul.)
Tsujimura, M. and Tsujimura, K. Flow-of-funds
structure of the U.S. economy 2001–2018.
Economic Systems Research.
Great inventions and substantial productivity
growth of the Roaring Twenties brought
unprecedented prosperity to the United States.
After Black Thursday in the fall of 1929 however,the
U.S.
economiclandscapechangeddramatically. To ensure that the bitter experienceof the Great Depression does not recur, Wesley
Mitchell and Morris Copeland, the architects offlow-of-funds
analysis,urgedabetterunderstanding of the circulation of funds, themeans of payment. The new century has so far
brought us many technological innovations andnew ways of doing business. The objective of thepaper is to find out if and how well the funds havebeen flowing in the U.S. economy over the past
two decades, using the flow-of-funds matrix(payer-payee matrix) proposed by Tsujimura andTsujimura (2018). A flow of funds analysis of the
U.S. quantitative easing. The industrial revolutionof the new century does not seem to have enoughmomentum circulating funds, the lifeblood of theeconomy.

Mainar-Causapé, A. J., Philippidis, G. andSanjuán-López, A. I. Constructing an open
access economy-wide database for bioeconomy
impact assessment in the European Union member
states. Economic Systems Research.

The bioeconomy encompasses the extraction,
processing and transformation of renewablebiological resources and waste streams, connectedto activities as diverse as food, feed, energy andmanufacturing. Under the auspices of theEuropean Union’s ‘Green Deal' strategy, this broadcollective of sectors is promoted as a cornerstone
for achieving sustainable growth. Progress indeveloping ex-ante tools of economy-wide
modelling analysis to assess its performance is,however, hindered by a paucity of consistent andcomprehensive
data.
To
overcome
thisshortcoming, the construction steps for a new setof open access social accounting matrices (dubbed‘BioSAMs’) is described for a detailed andcomprehensive selection of traditional andcontemporary bio-based accounts for each of the
EU member states. To illustrate its potential, astructural analysis based on three different andcomplementary
methods(Rasmussen-Jones,
hypothetical extraction method and eigenvector)
is performed to classify bio-based sector wealthgenerating properties and to identify highperformance (‘key') sectors.
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Number 45, August 2020

Parys, W. David Hawkins and the making of the
Hawkins-Simon conditions. Economic Systems
Research.

Mushkudiani, N., Pannekoek, J. and Zhang, L.
Uncertainty measures for economic accounts.
Economic Systems Research.

The Hawkins-Simon conditions, which arenecessary and sufficient for the viability of
input–output systems, are described in manyencyclopedias, textbooks and papers, but
always without historical details about thephilosopher David Hawkins. The rich literatureon the history of input–output economics has
neglected Hawkins, probably because he spent
only a few years among the economists. My
paper fills this gap. By using the relevantarchival material on Hawkins, Simon, andLeontief, I correct and expand some scarce
remarks on Hawkins by Simon and Samuelson.
I
discuss
Hawkins’s
threeremarkable
contributions to economics. First, Hawkins’s
dynamic input–output model in Econometrica in1948 scooped Leontief. Second, I show how
the correspondence between Hawkins andSimon created their famous joint note inEconometrica in 1949. Third, an overlooked
chapter in Hawkins’s 1964 book The Languageof Nature discussed the commodity values ofcommodities, generalizing Marx’s labour values
and the Technocrats's energy values.

The problem of adjusting large systems of
estimated economic or social accounts such thatthey fulfill known functional relationships can bequite complex. For such complex systems,
evaluating the accuracy of the estimates after the
adjustment is difficult since these estimates aredefined by unadjusted initial estimates, theaccounting equations and the adjustment method.
In this paper, we consider such accounting
systems as a single entity and develop scalar
uncertainty measures that are based on the firsttwo moments of the joint distribution of final
adjusted estimates. Scalar measures can help toeffectively communicate to the users the relevant
uncertainty of disseminated macro-economic
accounts and can assist the producer in choosing
and improving adjustment method and input
estimators. The proposed approach is illustrated
both analytically and by simulation. Applications to
supply and use tables and to time series data arepresented.

Ciaschini, C. and Chelli, F. M. Evaluating theimpact of Violence Against Women in themacroeconomic
Input–Output
framework.
Economic Systems Research.
Violence against women and girls (VAW&G) has
progressively become an emergency issue inmany European countries and a relevant topic ofpublic discussion. In this paper, we attempt toinsertthis
theme
withinamodel
formacroeconomic policy design and evaluation.
Special attention is devoted to the assessment ofdistortions in the allocation of public expenditure
generated by VAW&G, in terms of gains and losses
in aggregate total output. We adopt a
macroeconomic input–output approach by adding
to the framework an industry that produces careservices to victims of VAW&G. The resulting modelis integrated with the public expenditure
reallocations that emerge as a result of the
progressive elimination of violence. It is, thus, asimulation tool for determining total output gains
or losses that emerge from the reallocation of
public expenditures as VAW&G fades.

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Number 45, August 2020

Wang, Z., Zhang, Y., Niu, M. and Fan, Z. How
important is domestic and foreign demand for
China’s income growth by business function?.
Economic Systems Research.
This paper explores the contribution of domestic
and foreign demand to China’s income growthby business function. To this end, we extend asingle country input–output approach to a
global multi-country setting, and further
redefine the measure via forward linkages. We
also propose chaining structural decomposition
analysis to identify the role of domestic andforeign demand in functional income changes
over 1999–2011. Using the World Input–Output
Database combined with Labor Occupations
Database, we distinguish functional activities in
production, management, marketing and R&D.
This enables us to find that domestic andforeign final demands, especially the former,
jointly lead to China’s income growth bybusiness function. Dynamically, the generally
upward trends in China’s income hold in theaggregate as well as by industry and business
function. We also find that China’s income
growth is quite heterogeneous across industries
and business functions.

Södersten, C. H. and Lenzen, M. A supply-use
approach to capital endogenization in input–output
analysis. Economic Systems Research.

Carvalho, T. S., Santiago, F. S. and Perobelli,
F. S. Demographic change in Brazil and its impacts
on CO2 emissions. Economic Systems Research.

Input–output analysis currently treats capital
investment as exogenous to the inter-industry
system despite capital goods being used further inproduction processes. Previous studies haveapplied the Leontief calculus to include impacts ofcapital in footprint calculations. Here, we adopt a
supply-use approach to incorporating capital into
footprint calculations, by constructing capital
supply-use
tables(KSUTs)thatenabledifferentiating capital goods. As the new KSUT
formalism is compliant with the Supply-Use
formalism in the UN's System of National
Accounts, we can keep full transparency
throughout the process of calculating impact
multipliers. We demonstrate the usefulness of the
KSUT framework in a case study of the Australianeconomy, with environmental extensions from the
EXIOBASE3 database. If consumption-based
emissionswere considered
for theUN's
Framework Convention on Climate Change, the
KSUT framework would provide a consistent andtransparent foundation for working out countries’
responsibility for carbon emissions from bothcurrent use and capital investment.

In recent years, the debate about demographic
changes and its impacts on the economy has
increased. The growth in the relative share ofelderly people in the age pyramid may occur inthe coming decades in many parts of the world,
and their effects on the composition of
consumption, notably on energy demand andemissions, are not yet known. This article
estimates the changes in the pattern ofconsumption in Brazil due to the changes
projected in the age pyramid in 2050 and theconsequences of these changes on CO2 emissions.
For this, projections will be made using an input–
output model for the Brazilian economy for theyear 2010 considering 67 productive sectors andsix age groups. The results suggest that emissions
grow less than proportionally to population growth
and that the participation of sectors such as fuels
and transport shows a small decrease in the
consumption vector for 2050.

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Xiao, H., Meng, B., Ye, J. and Li, S. Are global
value chains truly global?. Economic Systems
Research.

Are global value chains (GVCs) truly global or
are they more of a regional phenomenon? We
provide a new perspective on this issue using
network analysis based on the measure of tradein value added. We first show that GVC activities
can be consistently identified and grouped into
three types of networks, i.e. traditional, simple,
and complex trade networks, according to thenumber of times that factor contents crossnational borders in global production sharing.
Further investigation on the changes in topology
and structure of various networks reveals that,
GVCs are more likely organized regionally anddominated by large countries, like the US,
China, and Germany. However, at the sector
level, what GVCs look like largely depends on
the perspective (supply or demand) and the typeof networks adopted. This can help better
understand the possible structural change of
GVCs brought by the US–China trade war andthe COVID-19 pandemic.

Hong, W., Chai, H., Chen, Y. H. H., Reilly, J. M.,
and Paltsev, S. Will using newer input–output
data for general equilibrium modeling provide a
better estimate for the CO2 mitigation cost?.
Economic Systems Research.
We provide a critical evaluation about how
updating the input–output data of a computable
generation equilibrium model can affect policy
results, an assessment that is rarely done inexisting literature. Specifically, we explore how
datasets with different fossil energy cost sharesalter results of policy simulations that aim at
reducing CO2 emissions. We prove analyticallythat a sudden fossil fuel price surge, which
provides little time for adjustment through input
substitution, can lead to a higher CO2 mitigation
cost. The finding is demonstrated empirically ina full-scale economy-wide model for a baseyear with lower fossil fuel prices, contrasted
with results from a base year when fossil fuelprices spiked. We then propose an adjustment
to resolve the issues of using input–output datathat embed abrupt fossil-fuel price hikes.

Temursho, U. On the Euro method. Economic
Systems Research.
This paper critically examines the Euro method
usage for the purposes of updating supply anduse tables (SUTs) and/or input–output tables. Its
known
restricted
applicability
to
only
unnecessarily aggregated and symmetric SUTs
(and not their underlying rectangular versions) isalready an issue of concern. However, bystudying analytically the nature of Euro's
adjustments of the SUT elements and empiricallyassessing some of its underlying assumptions,
including newly revealed ones, it is concluded
that the Euro method is a largely ad hoc
updating procedure. Its recently claimed
superiority over the generalized RAS approach(GRAS, or SUT-RAS) in the absence of industry
output is challenged. It is shown that applying
the standard GRAS with exogenously given
estimates of industry outputs under such
restricted data-availability environment still
outperforms the Euro method.

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Number 45, August 2020

Zhou, L. and Chen, Z. Are CGE models reliablefor disaster impact analyses?. Economic
Systems Research.
This study investigates a fundamental issue ofcomputable
generalequilibrium(CGE)
modeling: are CGE models reliable formeasuring the economic consequence analysis
of disasters? We assess the outputs of CGE
analyses after controlling for various modelingfactors such as data, type of model, andmodeling mechanisms via a meta-analysis of
253 CGE simulations in 57 empirical studies.
Our study arrives at three major findings. First,
we confirm that resilience significantly reducesbusiness disruptions from disasters. Second,
results using either real-world or hypothetical
data tend to vary substantially by hazard type.
Third, results are quite sensitive to model
assumptions and modeling structure. Overall,
we suggest that future impact assessments ofdisasters should be conducted more cautiously
in terms of adopting appropriate data, models,and shock scenarios, in order to improve thevalidity of CGE modeling outcomes.

Duan, Y., Ji, T. and Mei, D. Tariff costs embodied
in product prices: a dynamic analysis from global
value chain perspective. Economic Systems
Research.
The present study examines a measure, theembodied tariff, which is defined as the sum of all
tariffs imposed on intermediate inputs at various
stages of productions. It captures the total tariffcosts in products in the context of the global value
chain. We estimate the embodied tariff for 44
economies and 56 sectors, decompose it by tariff
source, and also decompose its temporal changes
using structural decomposition analysis. The
embodied tariff is more than twice the size of the
traditional direct input tariff, indicating a nonnegligible value chain effect. This demonstrates anoverall declining pattern over time, which reflects
a dominating effect of decreasing customs tariffs
overincreasing
international
production
fragmentation. Since 2011, however, the decline
in international production fragmentation has also
decreased embodied tariffs. A country’s customs
tariff is sizably translated into the embodied tariffof its own products, creating a competitive
disadvantage for domestic producers.

Gabela, J. G. F. On the accuracy of gravity-RAS
approaches
usedforinter-regionaltrade
estimation: evidence using the 2005 inter-regional
input–output table of Japan. Economic Systems
Research.
In contrast to international trade, it is still difficult
to find regional trade statistics within a nation.
Given that the gravity model continues to be very
popular, we test two gravity-RAS approaches used
for interregional trade estimation: a standard one
and an extended version, which additionallyestimates intra-regional flows. We assess theaccuracy with the help of two measures and for
different sectoral aggregation levels. For that, we
use the survey-based 2005 interregional input–
output table of Japan as a benchmark. Results
show high overall accuracy levels for the standard
approach, better than when using internationaldata, albeit with heterogeneous errors for sectors
and regions. We further find that the results of amultiregional input-output model are highly
sensitive to the trade estimation approach andthat errors slightly increase for increasing sectoral
disaggregation levels. Results from an experimentbased on a random number generator show how
RAS influences results.

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Number 45, August 2020

Moya-Martínez, P., Bermejo, F. and delPozo-Rubio, R. Hard times for long-term caresystems? Spillover effects on the Spanish
economy. Economic Systems Research.

Haddad, E. A., Mengoub, F. E. and Vale, V. A.
Water content in trade: a regional analysis for
Morocco. Economic Systems Research.

Since the end of the last century, demographic
aging has led to an increased demand for newsocial protection services. Universalizing theseto meet the needs of the most vulnerable
requires the design of policies that ensure thesustainability of the system. Consequently, theeconomic structure of a country and its
productive fabric are affected. Assessing theimpact of this growing demand is not an easytask, although extended input-output models
can help. With this aim, we determine thespillover effects of the demand shocks arisingfrom the increase in public spending allocatedfor the implementation of the Spanish longterm care system. The results reveal that suchspending proves efficient in sustaining 116,000
jobs, most of which are in social work
activities, entailing a large amount of direct but
low-skilled employment. In addition, 5,000
million euros are generated in value added,
including a fiscal return of 1,400 million euros.

This paper aims at evaluating the virtual watercontent in trade in an intra-country perspective
and discussing potential tradeoffs between theuse of natural resources and value added
creation. We develop a trade-based index thatreveals the relative water use intensities
associated with specific interregional andinternational trade flows. The index is calculated
considering the measures of water and value
added embedded in trade flows associated witheach regional origin-destination pair using aninterregional input-output matrix for Morocco
together with information on sectorial water use.
We add to the literature on virtual water byencompassing the subnational perspective in acountry that shows a clear ‘climate divide’.
Furthermore, we contribute to the literature byproposing an index that may be applied todifferent economies to evaluate multidimensional
trade-offs associated with the pressure of specificeconomic flows to the use of natural resources
relative to its economic relevance.

Allan, G. J., Connolly, K. and McIntyre, S. G.
Developing an electricity satellite account (ELSA):
an application to Scotland, UK. Economic Systems
Research.
Within the system of national accounts theelectricity sector is typically reported as a single
entry representing generation, transmission,
distribution and trade. The ways in which thesecomponents interact with the economy differ
greatly, a feature lost within the standard
accounting framework. In this paper we propose
an Electricity Satellite Account (ELSA) approach tobetter understand the linkages between theelectricity sector and economy, with a particularfocus on generation technologies. In developing
this framework, we draw parallels with Tourism
Satellite Accounts (TSAs). To illustrate thepractical steps in constructing ELSAs, we develop
an ELSA for Scotland for 2012, and show how the
ELSA framework gives an improved understandingof the economic contribution of the electricity
sector, which is critical in improving theusefulness of such accounts for climate, energy,
and economic policy.

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Number 45, August 2020

Reyes, F. A. On growth regimes, structuralchange and input coefficients. Economic
Systems Research.

Steenge, A. E. and Reyes, R. C. Return of thecapital coefficients matrix. Economic Systems
Research.

Miroudot, S. and Ye, M. Decomposing value
added in gross exports. Economic Systems
Research.

The input-output (IO) model assumes that thetechnical coefficient matrix changes as an
economic system develops, following either of
two tendencies; one, the entries of the matrix
shrink, due to increased efficiency on the
production lines; two, they expand, while
productivity gains concentrate in the use offactors. Further, the economic structure grows
more complex, as industries become more
tightly(vertically)
integrated
andthedevelopment process evolves. Both phenomena
have seldom been analysed together, despite
the apparent connections they may have withthe evolution of economic structures and thedevelopment opportunities countries may face.
This paper intends to examine the implicationsof these tendencies for the evolution of
economic systems in regards to the dynamics
the growth process may adopt. Two indicators
are presented here useful to characterise such
dynamics, later tested on the Mexican IO data.

A core ingredient of post-disaster input–output
recovery models is the reconstruction of lost
production capacity. Therefore, one would expect
a set of models endowed with capital coefficientsmatrices to be available for analysis. However,this is not the case, possibly due to earlier
negative
experiences
with
such
models.
Nevertheless, in this paper, we aim to show that
there is a class of problems that can beaddressed successfully with a dynamic input–
output model with a fully functioning capitalcoefficients matrix. We put forward that ifreconstruction is tightly planned, investment andtherewith gross output essentially become predetermined. This also means that traditional final
demand becomes an endogenous residual, withthe model being transformed into a distribution
and allocation model. We begin with a reorderingof variables and equations as proposed in
Leontief’s dynamic inverse, and then move on
directly
to
the
newly
proposedmodel.
Suggestions for further work are given.

Several papers using intercountry input-output
tableshave
developed
frameworks
todecompose value added in gross exports andto remove potential double-counting inintermediate inputs. But these papers rely on
different definitions for the domestic value
added, foreign value added and doublecounting terms, depending in particular on theperspective from which gross exports aredecomposed (world level, country level orbilateral level). At this stage, it is very difficult
for any user of value-added trade statistics toknow what is calculated and which type ofdecomposition should be used. In this paper,
we provide a general framework that relies on
extraction matrices to unambiguously andconsistently define domestic and foreign valueadded terms in the world, country and bilateralperspective. This framework allows us toclassify existing decompositions based on theperspective taken and their definition of
double-counting. We also indicate the most
relevant decompositions for different types oftrade analysis.

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Number 45, August 2020

Severini, F., Pretaroli, R., Socci, C., Zotti, J.
and Infantino, G. The suggested structure of
final demand shock for sectoral labour digitalskills. Economic Systems Research.
International data seem to confirm that countries
with a relative abundancy of highly-skilled labour
with digital competences grow faster than others.
For this reason, digital competences and skills ingeneral are progressively assuming a central rolein labour market policies. In this article, we show
the potential of the disaggregated multisectoral
analysis with the macro multipliers approach as atool of economic policy. Such analyses allow
identifying a set of endogenous policies in which
specific objectives do not clash with growthobjectives.
The
identification
andthequantification of the macro multipliers is basedon an extended multi-industry, multi-factor andmulti-sector model, which accounts for the
representation of the income circular flow as in
the social accounting matrix (SAM). The SAM
constructed for this exercise allows for a proper
disaggregation of the labour factor by formal
educational attainment, digital competences andgender for the case of Italy.

See all latest articles,
volumes and issues

Highlights in journals
Temursho, U. and Miller, R. E. (2020) Distancebased shared responsibility. Journal of Cleaner
Production.
This paper presents the global multi-regional
extension of the upstream and downstream shared
responsibility input-output (IO) frameworks andproposestouse
distance-based
sharing
parameters in their applications. The extent of
producers’ control over production processes isapproximated by the inverse (function) of theaverage distance of producers from primary inputs
providers along the entire input demand chain.
Similarly, the extent of producers’ influence over
advertising and sales is approximated by the
inverse (function) of the average distance of
producers from final users along the output supply
chain. Our empirical application of the shared
responsibility
approaches
focusesonCO2emissions, using the 2005 world IO table available
from WIOD. In the empirical tests of aggregation(in)varianceofcountry-level
sharedresponsibilities, it is found that the shared
responsibilities are more robust to aggregation
when the sharing parameters are pegged to
distance rather than to value added or final
demand. All in all, our results further substantiate
the robustness of the shared responsibility
accounting principle, and this is important if theprinciple is to become standard or alternative(complementary) reporting practice.

Lenzen, M. et al. (2020) Global socio-economic
losses and environmental gains from theCoronavirus pandemic. PLOS ONE.
On 3 April 2020, the Director-General of the WHO
stated: “[COVID-19] is much more than a healthcrisis. We are all aware of the profound social andeconomic consequences of the pandemic (WHO,2020)”. Such consequences are the result of
counter-measures such as lockdowns, and worldwide reductions in production and consumption,
amplifiedbycascading
impactsthroughinternational supply chains. Using a global multiregional macro-economic model, we capture direct
and indirect spill-over effects in terms of social andeconomic losses, as well as environmental effectsof the pandemic. Based on information as of May
2020, we show that global consumption losses
amount to 3.8$tr, triggering significant job (147
million full-time equivalent) and income (2.1$tr)
losses. Global atmospheric emissions are reducedby 2.5Gt of greenhouse gases, 0.6Mt of PM2.5, and
5.1Mt of SO2 and NOx. While Asia, Europe and the
USA have been the most directly impacted regions,and transport and tourism the immediately hit
sectors, the indirect effects transmitted alonginternational supply chains are being felt across theentire world economy. These ripple effects
highlight the intrinsic link between socio-economicand environmental dimensions, and emphasise thechallenge of addressing unsustainable global
patterns. How humanity reacts to this crisis willdefine the post-pandemic world.

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Number 45, August 2020

Wilting, H. C., Schipper, A. M., Ivanova, O.,
Ivanova, D. and Huijbregts, M. A. J. (2020)
Subnational greenhouse gas and land‐based
biodiversity footprints in the European Union.
Journal of Industrial Ecology.
Insights into subnational environmental impacts
and the underlying drivers are scarce, especiallyfrom a consumption‐based perspective. Here, wequantified greenhouse gas (GHG) emissions andland‐based biodiversity losses associated with final
consumption in 162 regions in the European Union
in 2010. For this purpose, we developed anenvironmentally extended multi‐regional input–
output (MRIO) model with subnational European
information on demand, production, and trade
structures subdivided into 18 major economic
sectors, while accounting for trade outside Europe.
We employed subnational data on land use andnational data on GHG emissions. Our results
revealed within‐country differences in per capita
GHG and land‐based biodiversity footprints up to
factors of 3.0 and 3.5, respectively, indicating thatnational footprints may mask considerable
subnational variability. The per capita GHG
footprint increased with per capita income andincome equality, whereas we did not find such
responses
forthe
per capita
land‐based
biodiversity footprint, reflecting that extra income
is primarily spent on energy‐intensive activities.
Yet, we found a shift from the domestic to theforeign part of the biodiversity footprints withrising population density and income. Because ouranalysis showed that most regions are already net
importers of GHG emissions and biodiversity
losses, we conclude that it is increasingly
important to address the role of trade in nationaland regional policies on mitigating GHG emissions
and averting further biodiversity losses, bothwithin and outside the region itself. To further
increase the policy relevance of subnational
footprint analyses, we also recommend thecompilation of more detailed subnational MRIO
databases including harmonized environmental
data.

Rocco, M. V., Guevara, Z., Heun, M. K. (2020)
Assessing energy and economic impacts of largescale policy shocks based on Input-Output
analysis: Application to Brexit. Applied Energy.
The assessment of the prospective, economywide, economic and environmental impact oflarge-scale policy shocks is currently performed
via general equilibrium models, relying on
backgroundinput–output
data
usually
characterized by a very aggregated definition of
the energy conversion chain. Thus, such models
are not always able to properly assess the impact
of policy shocks on the energy conversion chain.
On the other hand, empirical models based on
physical data provide a detailed picture of theenergy conversion chain but are unable tocomprehensively
address
energy-economy
interactions.

This paper introduces an approach to analyze
the impact of large-scale policy shocks withspecial focus on international trade and global
energy conversion chains. The approach relies
upon an empirical meso-economic equilibrium
model and a physical supply and use model ofthe energy conversion chain. The link between
the models is provided by the Multi-Factor
Energy Input-Output model.

The proposed approach is formalized and applied
to assess the economic and energy impact ofdifferent Brexit scenarios, returning the related
impact in terms of changes in value added
generation, change in production of energy
carriers
andchangeinenergy-related
CO2 emissions. It is found that a highly
disaggregated picture of the energy supply chain
provides fundamental insights to assess thephysical viability of economic
scenarios.
Therefore, the proposed method reveals
important synergies that may arise from thejoint application of the economic and physicalmodels, hence becoming a suitable candidate toprovide insights and guidance for policy making.

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Rocco, M. V., Golinucci, N., Ronco, S. M. andColombo, E. (2020) Fighting carbon leakage
through consumption-based carbon emissions
policies: Empirical analysis based on the World
Trade Model with Bilateral Trades. Applied
Energy.
Policyinitiatives
towards
reductionofCO2 emissions implemented so far are groundedon the so-called Production-Based paradigm:
this approach allocates responsibility ofemissions to countries that directly caused such
emissions, without taking into account all theindirect contributions to CO2 emissions caused
outside country’s borders, eventually leading to
the so-called carbon leakage phenomenon. In
this paper, the alternative Consumption-Basedapproach is proposed, and its effectivenessassessed: according to this approach, policy
initiatives
allocates
responsibilityforCO2
emissions
proportionallytothe
CO2 emissions embedded in goods and services
required by industries as inputs for production.
Globalenvironmental
and
economicconsequences of carbon emissions reduction
policies, applied at the European level based on
both Production- and Consumption-Basedparadigms, are comparatively assessed basedon the World Trade Model with Bilateral Trades.
Results of this study suggest that defining
CO2
emissionspolicies
basedonaConsumption-Based paradigm seems to be themost effective way to reduce the global carbon
emissions,avoidingthecarbonleakagephenomenon which may occur in economies
regulated by Production-Based policies. Indeed,
an imposed reduction in CO2 emissions embedded
in EU final demand through a Consumption-BasedAccounting policy would result in a global
CO2 emissions reduction up to almost 1.2 Gton.
On the other hand, an imposed reduction in direct
EU CO2 emissions according to a PBA approach
would result in an overall increase in global
carbon emissions up to almost 0.8 Gton.
Sancho, F. (2020) The mitigation potential of ecotaxation on carbon emissions: income effects
under downward rigid wages. Environmental
Economics and Policy Studies.
Eco-taxation is the preferred market based tool
for achieving mitigation of CO2 emissions andfostering sustainability. It works through taxinduced changes in the price of polluting activities
while ideally transferring the environmental costto emitters and users. The initial eco-tax signalingis transmitted and further amplified to the rest of
the economy through the structure of costinteractions. In particular, real-world economies
work under wage adjustment rules that reflect
downward rigidity in labor costs when facing
rising prices. These common rules may affect the
mitigation capacity of the eco-tax policies. We
study this issue using an inter-industry model inwhich we overcome the classical dichotomy
between prices and quantities thanks to thenovelty of connecting consumption demand withthe changes in private income levels that would
follow from the enacted eco-tax. We isolate
income effects by keeping the given productive
structure of the economy as unaltered as
possible. In this sense, the proposed model has a
bit of a neo-ricardian flavor. We implement themodel and check the mitigation effectiveness of
two different eco-tax policies using recent tabular
data for the Spanish economy in 2015. The main
conclusion is that we would not observe double
benefits, even when all eco-tax collections arerecycled back into the economy.

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Newsletter
Number 45, August 2020

Nansai, K. et al. (2020) Affluent countries
inflict inequitable mortality and economic loss
on Asia via PM2.5 emissions. Environment
International.
This research sets out to quantify the mortality
and economic loss in individual Asian countries
caused by the PM2.5 emissions induced by the
consumption of the world’s five highestconsuming countries (US, China, Japan,
Germany, UK). In 2010 alone, the economic
impact of these five countries’ consumption
caused a loss of almost 45 billion US dollars
due to the premature deaths of more than 1
million people in Asia, including 15 thousandchildren younger than 5 years old. The
percentage ratio of economic loss to valueadded driven by consumers via trade differed
greatly among the impacted countries. For theUS, the highest percentage loss was 4.1% in
Laos, followed by 2.0% in Bangladesh, bothmarkedly higher than the figures for the moredeveloped countries, such as 0.21% for Japanand 0.18% for Korea. This reflects theinequitable value chain existing between
consumer countries and impacted countries,
and implies that developing countries are
obtaining value-added in exchange forunintentionally increased health risks, delaying
their development and potentially creating a
vicious circle that hinders much-needed

improvements in areas like poverty reduction
and public health. This inequitable situationneeds to be redressed through introduction ofclean energy and other types of technologicalassistance to help achieve United Nations
Sustainable Development Goals 7, 10 and 13.
Such as move is essential if premature infant
deaths are to be curtailed.

Faturay, F., Vunnava, V. S. G., Lenzen, M. andSing, S. (2020) Using a new USA multi-region
input output (MRIO) model for assessing economicand energy impacts of wind energy expansion in
USA. Applied Energy.
The share of wind energy in the US energy supply
has been steadily increasing in the last two
decades. With new wind energy farms being
installed in various states of the country, local
and multi-regional economic disruptions arebound to take place. The multi-regional economic
impacts of installing new wind farms wasdetermined using the US multi-region inputoutput (US-MRIO) model that has beendeveloped, also called the USLab. Currently, there
is a lack of multi-regional impact assessment ofwind energy expansion in the US. In this article,
we use the US-MRIO to determine regional andsectoral spill-over effects resulted frominstallation of wind energy farms in 10 US states.
The economic impacts were calculated by feeding
the USLab with data obtained from the Jobs andEconomic Development Impacts (JEDI) Windmodel published by National Renewable Energy
Laboratory (NREL). The JEDI wind model provides
the change in local economic data such as thenumber of new jobs created and increase ofenergy-related products in each region in the
final demand and value-added. The data about
final demand and value-added change was usedwith the US-MRIO model to account for the multiregional economic impact across US due toinstallation of wind energy farms. The year ofwind farm installation was set to 2017 and a USMRIO for 2017 was generated to calculate theeconomic impact. The total economic impact was
found to be 26 billion dollars of which 3 billion
dollars was associated with the states where no
new wind energy capacity was installed.
Installation of new energy production capacity
also results in “change in energy consumption”
across US. Using the US-MRIO model and theenergy intensity of manufacturing sectors, theenergy consumption increase due to addition ofwind farms was found to be about 6952 trillion of
btu for the total change in economic throughput.
Primary metal manufacturing and Machinery
manufacturing sectors stood out amongst othermanufacturing sectors with considerable change
in energy consumption with an increase of 3074
trillion of btu and 1537 trillions of btu.
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Number 45, August 2020

Wakiyama, T., Lenzen, M., Geschke, A.
Bamba, R. and Nansa, K. (2020) A flexible
multiregional input–output database for citylevel sustainability footprint analysis in Japan.
Resources, Conservation and Recycling.

Understanding
environmentalandsocialfootprints at the city level through multiregional
input-output (MRIO) analysis is a key todesigning policy aimed at mitigating the direct
and indirect impacts of a city economy onsustainability. However, since the quantity ofdata required is substantial, compiling city-level
MRIO tables in Japan and updating them yearly
involves a huge amount of labor-intensive andtime-consuming work. The authors havedeveloped a cloud-computing platform called
the Japan Industrial Ecology Laboratory (IELab)that is highly flexible in terms of its sectoral andregional resolution, which enables the user tobuild customized Japanese MRIO tables inaccordance with the user’s specific objectives.
The Japan IELab embeds over 145 types ofstatistical information on regional economic
activities, including input-output tables at theprefecture and city level. These data serve as
constraints in the optimization process to build acustomized MRIO table. With IELab, the user
can freely select cities, sectors and years from1894 municipalities and 4266 sectors for theyears 2005 through 2016. As a case study, two
MRIO tables were built at the prefecture andcity levels to demonstrate the usefulness andflexibility of the system. Their validity wasconfirmed by comparing results with the original
statistics. The prefecture-level MRIO tableaccurately reflected the economic structure ofJapan’s47
prefecturesbyidentifying
differentiating prefectural features, distinguishing
between, for example, manufacturing-oriented andservice-oriented prefectures. The city-level MRIO
table appropriately characterized various economic
activities and accurately reflected the locationalfeatures of a city within the prefecture. The role ofstakeholders in data management and further
improvement as well as possible applications of
the Japan IELab, including life cycle assessment
and disaster analysis, are discussed.
Rodríguez-Alloza, A. M., Heihsel, M., Fry, J.,
Gallego, J., Geschke, A., Wood, R. and Lenzen,
M.
(2020)
Consequencesof
long-term
infrastructure decisions—the case of self-healing
roads and their CO2 emissions. Environmental
Research Letters.

the rate at which emissions can be reduced.
Self-healing asphalt is a new type oftechnology that will reduce the need for fossil
fuels over the lifetime of a road pavement, atthe same time as prolonging the roadlifespan. In this study we have assessed thebenefits of using self-healing asphalt as analternative material for road pavements
employing a hybrid input–output-assisted
Life-Cycle Assessment, as only by determining
the plausible scenarios of future emissions willpolicy makers identify pathways that mightachieve climate change mitigation goals. We
have concluded that self-healing roads could
prevent a considerable amount of emissions
and costs over the global road network: 16%
lower emissions and 32% lower costs
compared to a conventional road over the
lifecycle.

What could be the reduction in greenhouse gas
emissions if the conventional way of maintaining
roads is changed? Emissions of greenhouse gases
must be reduced if global warming is to be
avoided, and urgent political and technologicaldecisions should be taken. However, there is alock-in in built infrastructures that is limiting
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Number 45, August 2020

Wang, C., Malik, A., Wang, Y., Chang, Y.,
Lenzen, M., Zhou, D., Pang, M. and Huang,
Q. (2020) The social, economic, andenvironmental implications of biomass ethanol
production in China: A multi-regional inputoutput-based hybrid LCA model. Journal of
Cleaner Production.
As an alternative to conventional liquid fuels,
bioethanol holds the promise of transitioning
to a clean and low-carbon energy future.
China’s bioethanol industry is at its nascentstage. In this study, we developed a hybrid life
cycle assessment model that integrates themulti-regional input-output (MRIO) approachand specific production data to evaluate thesocial, economic, and environmental (i.e. thetriple-bottom-line, TBL) impacts of thebioethanol sector in China’s economic systems.
The MRIO model was constructed using the2012 MRIO table, and the data for the typicaltechnologies of bioethanol production wereleveraged. To be specific, we evaluatedemployment creation, economic stimulus, andenergy use of bioethanol production in 28
scenarios in Henan province. The results showthatcomparedtopetroleumrefining,
bioethanol production is more effective for
economic stimulus and energy saving, but lesseffective at job creation. The impact ofbioethanol production varies by technologies.
For every 1 million yuan of bioethanol

production in China’ economic system, firstgeneration technology offers a projected 1.92
million yuan in economic growth and job creationof 2.06 full-time equivalent, while the secondgeneration technology offers a lower energy
consumption (1.19 TJ). In most scenarios, theupstream sectors account for more than half of
the TBL impacts of biofuel production. This study
helps to quantify the TBL impacts associated withthe gasoline-to-bioethanol transition in China,
envisions the green opportunities for impact
mitigation, and sheds light on the potential
direction for robust planning and policy making toadvance the bioethanol industry’s development.

and non-traded parts. We also use a multi-regional
input-output database for performing a structural
decomposition analysis (SDA) to investigate thefactors contributing to changes in CO2 emissions.
We find that Thailand continually stood out as a net
carbon exporting country. CO2 embodied in exports
accounted, on average, for 40% of domestically
produced emissions. Our SDA results suggest that
traded and non-traded emissions grew mainly due
to increasing per-capita consumption in Thailand
and abroad. The retarding effect from energy
efficiency improvement was significant but not
sufficient to reduce emissions.

Ninpanit, P., Malik, A., Wakiyama, T.,
Geschke, A., and Lenzen, M. (2019) Thailand’s
energy-related carbon dioxide emissions fromproduction-based
andconsumption-based
perspectives. Energy Policy.
Over the past few decades, Thailand has been
one of the highly open economies and one of themost successful countries in applying the exportled growth model. At the same time, carbon
dioxide (CO2) emissions released in Thailand
tripled between 1990 and 2015. To examine howinternational trade plays a role in shaping
Thailand’s CO2 emissions inventory, we compare
emissions under both production-based andconsumption-based accounting over 1990–2015
and disaggregate total CO2 emissions into traded
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Number 45, August 2020

Michel, B., Hambÿe, C., Hertveldt, B. andTrachez, G. (2020) Extended supply and use
tables for Belgium: where do we stand? An
overview of achievements and outstanding
issues. Eurostat Review on National Accounts
and Macroeconomic Indicators.
The construction of extended supply and use
and input-output tables has been presented asa means of addressing some of the current
challenges for the national accounts that are
induced by economic globalisation. Such tables
take
into
account
within-industry
firmheterogeneity that is not related to productcharacteristics, through a disaggregation ofindustries by size, ownership, exporter status orotherrelevant
criteria.
Beyondtheircontribution to improving national accounts
data, these extended tables also allow us toderive new results on the participation of
categories of firms in domestic and global value
chains. In this article, we give an overview ofwhere we stand today in terms of theconstruction of extended supply and use andinput-output tables (SUT and IOT) for Belgium:
methodological choices, data used, tables thathave already been constructed, and analyticalresults. This is designed as an input fororganising future work on extended tables for
Belgium, but it may also provide useful
information for other countries that engage inthe construction of extended SUT and IOT.

Database
Social and Financial Accounting Matrices for Brazil (2010-2017)
Erika Burkowski (UFF), Fernando Salgueiro Perobelli (UFJF)
and Inácio Fernandes de Araújo Júnior (USP)

Description
The Social and Financial Accounting Matrices areavailable for the years 2010 to 2017. It considers:
•
•
•
•
•
•
•

128 Goods and Services;
68 Sectors;
3 Factors;
4 Institutional Agents in the Current Account;
4 Institutional Agents in the Capital Account;
8 Instruments in the Financial Account;
Rest of the World Account.

See the database here.

24Newsletter
Number 45, August 2020

EventsNext conferences

Next workshop
7TH PERMANENT WORKSHOP (WEBINARS EDITION)ERSA2020 Web Conference is a great opportunity to come together
meet back colleagues and exchange on ongoing researches.
ERSA has decided to set symbolic fees to enable regional
scientists from worldwide to gather again on our unique platform
and benefit from the relevant and hot knowledge produced by
ERSA extraordinary Community!
Due to the global sanitary situation, the 7th permanent workshop of the
SHAIO will be held, throughout 2020, in webinar format.
During the next few months, and within the framework of the workshop, aseries of COVID-19-related online presentations will take place with the
input-output analysis as the methodological protagonist.

The entire input-output community is invited to join these events. Just keep
an eye on the website and our social media (Facebook - Twitter), where wewill publish the dates and registration forms (totally free).

6 Keynote Lectures - 1 Round Table on Covid
48 Thematic Sessions - Over 150 Presentations from28 Countries across Europe and beyond
Registration

Preliminary Programme
Overview

From SHAIO we wish all the best for you and your families.

The SHAIO Council.

IIOA Newsletter Editor:
Vinicius A. Vale newsletter@iioa.org
Federal University of Parana, Brazil

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