1. WIOD Consortium Meeting Sevilla, 25 – 26, May, 2011
Trade Embodied CO2 Emissions with Private Consumption Feedback Effects Kurt Kratena Ignazio Mongelli Gerhard Streicher

2. Trade embodied CO2 emissions
Literature and research questions
Extensive literature, using multi-regional input-output models (e.g. OECD: Ahmad, Wyckoff, 2003 and Nakano, Okamura, Sakurai, Suzuku, Tojo, Yamano, 2009)
National trade emission balances in a multiregional framework (Serrano, Dietzenbacher, 2008)
Motivation: shifting from production-based to consumption-based CO2 accounting  why leaving out ‘induced’ consumption?
Production for exports generates income  energy use and CO2 in households and production
Extending the static IO model to a type II model with a calibrated consumption block: Consumption patterns are very different across countries, both in a static as well as in a dynamic perspective

3. Trade embodied CO2 emissions
Main building blocks of the extended model
Multi-regional input-output model based on WIOD dataset
Dynamic consumption model (durables/non-durables) for EU countries (Kratena, Mongelli, Wueger)
Dynamic consumption model for China (Cuihong, et al., 2010)
Simple dynamic models (calibration) for other WIOD countries
 Type II input-output model with endogenous and exogenous private consumption and dynamic reaction patterns in consumption
Linking environmental satellite accounts of WIOD to energy use in consumption and production

4. Trade embodied CO2 emissions
Model applications
Calculation of time series of ‘augmented’ national CO2 trade balances (exports and imports)
Calculation of time series of ‘augmented’ bilateral CO2 trade balances, e.g. China vis á vis EU
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