1. 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

2. 2 World Carbon Responsibility 28 June 2015 Our approach: Consumer responsibility Rodrigues et. al. (2006) 1 1 Rodrigues, J, Domingos, T, Giljum, S, Schneider, F. Designing an Indicator of Environmental Responsibility. Ecological Economics 59, 2006: 256-266. Responsibility embedded in imports CONSUMER RESPONSIBILITY Responsibility embedded in exports REGION DIRECT EMISSIONS Imports REGION FINAL DEMAND Exports VALUE ADDED Responsibility in exports + CONSUMER RESPONSIBILITY DIRECT EMISSIONS Responsibility in imports + =

3. 3 Multi regional input/output Calculation of countries’/world regions’ carbon responsibilities. With a full environmental multi-regional input/output (MRIO) model, based on the GTAP 6 database (2001). World Carbon Responsibility 28 June 2015 INVESTMENT (...) REGION 1 IO TABLE IMPORTS EXPORTS 87 regions x 57 sectors GOVERNMENT HOUSEHOLDS LAND UNSKILLED LABOR SKILLED LABOR CAPITAL NATURAL RESOURCES REGION 87 IO TABLE

4. 4 World regions DEVELOPED (inc. Japan, Hong Kong, Singapore) ASIA LATIN AMERICA AFRICA FOSSIL FUEL EXPORTERS - Australia - Canada - Venezuela - Middle East - South Africa - Russian Federation - (…) EASTERN EUROPE World Carbon Responsibility 28 June 2015 DIRECTINT. TRADE World24,7504,996 A+D+F21,7203,360 RESPONSIBILITY (MTonCO 2 )

5. 5 World Carbon Responsibility 28 June 2015 Transfer of consumer responsibility in inter- regional trade (MtonCO 2 ) 11,286 4,814 3,980 12,857 307 (1.91) DEVELOPED (importers) 190 343 (0.68)414 (0.70) ASIA (exporters) FOSSIL FUEL EXPORTERS 1,034 (1.47) (1.65) 5,549 4,883 1,072 (1.58) CONSUMER RESPONSIBILITY _ DIRECT EMISSIONS = Responsibility in imports _ Responsibility in exports

6. 6 World Carbon Responsibility 28 June 2015 Consumer responsibility trade balance (MtonCO 2 )

7. 7 World Carbon Responsibility 28 June 2015 1 Rodrigues, J, Domingos, T, Giljum, S, Schneider, F. Designing an Indicator of Environmental Responsibility. Ecological Economics 59, 2006: 256-266. Responsibility embedded in payment for imports PRODUCER RESPONSIBILITY Responsibility embedded in payment for exports REGION DIRECT EMISSIONS Payment for imports REGION FINAL DEMAND Payment for exports PAYMENT TO PRIMARY INPUTS PRODUCER RESPONSIBILITY DIRECT EMISSIONS Responsibility in payment for imports Responsibility in payment for exports + = + Our approach: Producer responsibility Rodrigues et. al. (2006) 1

8. 8 World Carbon Responsibility 28 June 2015 Transfer of producer responsibility in inter- regional trade (MtonCO 2 ) PRODUCER RESPONSIBILITY _ DIRECT EMISSIONS = Responsibility payment for exports _ Responsibility payment for imports 128 (1.11) 11,763 ASIA (exporters) FOSSIL FUEL EXPORTERS DEVELOPED (importers) 378 (2.36) 283 (0.42) 675 (0.96) 648 (1.29)661(1.12) 11,286 4,913 5,251 5,549 4,814

9. 9 World Carbon Responsibility 28 June 2015 Producer responsibility trade balance (MtonCO 2 )

10. 10 World Carbon Responsibility 28 June 2015 Summing up... (MtonCO 2 ) _ Producer Responsibility Direct Emissions Consumer Responsibility _ Direct Emissions