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

Dear IIOA member, Researchers………………………………..3 • Sir Richard Stone Prize for the ESR I am pleased to release the latest issue of the International Input-Output Newsletter. I thank all publications in 2017 and 2018……..6 contributors. • Published papers and books This is my last issue as IIOA Newsletter Editor. We are pleased to present the new Editor. in IOA and related methods…………..9 This issue contains information about the Online sessions for young researchers, Sir Richard - Latest ESR articles……..………………..9 Stone Prize for the ESR publications in 2017 and 2018, Latest ESR articles, Highlights in - Highlights in journals…………….……18 Journals, chapter books, and databases. Databases…………………………………….24 You can also find Call for Web Conferences and Workshop. • Events…………………………………….……25 I hope you enjoy it! Any feedback, comments or suggestions are greatly appreciated. I - Next workshop………..………….….....25 also welcome contributions to future issues. - Next conferences……..…………...... 25 Vinicius de Almeida Vale IIOA Newsletter Editor Federal University of Parana, Brazil Would you like to contribute to the IIOA Newsletter E-mail: [email protected] newsletter? Contact us [email protected] Personal E-mail: [email protected] 1 Newsletter Number 45, August 2020

New IIOA Newsletter Editor

Three years ago, I took over as Editor of the Newsletter with the I am delighted to take the baton from Vinicius and to be the next IIOA mission to publish the issues regularly. Mission accomplished! This is Newsletter Editor. In these times when we are all distant from one my 13th published issue. another and sadly can’t celebrate our annual meeting, the Newsletter becomes an even more useful linkage between us members and the During this period, I have had the help of several colleagues. So Association. I will try to continue the excellent work of my many, I simply thank all of them as a group. I learned a lot. predecessor over recent years. Nonetheless, I intend to introduce some new ideas that I hope you will enjoy. I hope you have enjoyed the issues. I also hope the Newsletter has brought you all IIOA members together, in some way. Warm hugs and keep sending your news to the IIOA newsletter!

Starting the next issue, a great personal friend of mine during my André Carrascal Incera time at from REAL at UIUC will take over as Editor. The IIOA City-REDI/WM-REDI, Birmingham Business School Newsletter will continue to be in good hands. 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 2 Newsletter Number 45, August 2020

Online sessions for young researchers

Unfortunately, the International Input-Output the session with the other speakers and made sure element of our activities, so learning about ways to Conference in Kuala Lumpur had to be that an online video-calling platform would be used make these happen was helpful. The prime postponed due to the Covid-19 pandemic. To that would suit all speakers. The organizers then objective, however, was to support young give young researchers an opportunity to mass-mailed the IIOA-members to attend the researchers. This worked out well, to a large extent present their work and to get some feedback sessions as members of the audience. In order to due to the activities of the session caretakers: on their current work, the IIOA Council decided avoid unnecessary internet connection disruptions, Oliya Maxudova (Ritsumeikan Asia Pacific to organize a small-scale online initiative the total number of participants per session was University), Carolina Silva Ribeiro (Federal during the first week of July (the week in which capped at eight. This created a cordial atmosphere, University of Bahia), Eduardo Sanguinet (Pontifical the conference would have taken place). It to the extent possible in an online setting. All Catholic University of Rio Grande do Sul/Catholic contained five organized sessions. The sessions were full, although misinterpretations with University of the North), Maksud Bechkanov (Bonn speakers and titles of their presentations are respect to time zones caused a small number of University) and Wannaphong Durongkaveroj identified below. latecomers (but this happens at physical (Australian National University). conferences as well…). The caretakers had also The organizers (Satoshi Inomata, Shigemi ensured that all participants had been sent the Thanks a lot! Kagawa and Bart Los) invited all researchers slides and papers beforehand, to minimize the ‘damage’ in case of disruptions. who had (i) submitted a paper to the Leontief Bart Los Prize competition, (ii) wanted to be included in the Development Programme or (iii) had The sessions went well. Internet-related problems applied for IIOA travel grants. Of the 48 invited were very minor, and session caretakers all researchers, 18 accepted the invitation. To be reported substantial interaction between sure that all presenters could attend without presenters and members of their audiences. As being deprived from sleep, the speakers were organizers we also learned a lot along the way. We assigned to Oceania/Asia/Europe and received a number of useful suggestions for Europe/Americas sessions (unfortunately, we improvement. Nobody knows how we will gather in had no African speakers). So-called ‘caretakers’ the future. We can only hope, it will be possible to played a pivotal role in the organization: one organize physical meetings again. Still, it is likely speaker coordinated the date and the time of that online events will remain an important 3 Newsletter Number 45, August 2020

Session 1 Eduardo SANGUINET (Pontifical Catholic University of Rio Grande do Sul/ Kehan HE (University College London), "Improving Input-Output Model for Catholic University of the North), "Uneven Integration in Domestic and Time Lagged Analysis – a Big Data Approach" Global Value Chains: the Role of Functions in Value Added Trade in Brazilian Regions“ Wannaphong DURONGKAVEROJ (Australian National University), "Developmental Gains from Joining Global Production Networks: Does Session 4 Domestic Value Added Matter?" Keitaro MAENO (Kyushu University), "The Role of Market Shares of Yu ZHANG (Chinese Academy of Sciences), "Impact of Non-Tariff Barriers: Commodities and Carbon Footprint of Nation" Evidence from China" Koshiro MATSUI (Kyushu University), "Global Warming and Lifecycle CO₂Emissions from Electricity Consumptions at Prefecture Level" Session 2 Man LI (Shandong University), "The Role of China's Main Blue Economy in Maksud BECHKANOV (Bonn University), "An Economy-wide Assessment of Tackling Climate Change: An Input-Output Analysis" Agricultural Productivity Change Effects on Virtual Water Trade Flows" Oliya MAXUDOVA (Ritsumeikan Asia Pacific University), "The Impact of the Peilin CHEN (Renmin University of China), "World Embodied Energy Mining Industries Sector of Tajikistan on Economic, Environmental and Accounting with Capital Stock Change" Social Development“ Yixin HU (Southern University of Science and Technology), "Fluvial Flood Footprint Assessment under Climate Change: An Application to Ghana“ Session 5 Andressa PROQUE (Federal University of Juiz de Fora), "Fuel tax, Cross Session 3 Subsidy and Transport: Assessing the Effects on Income and Guilherme CARDOSO (Federal University of Minais Gerais), "Fiscal Austerity Consumption Distribution in Brazil" in Brazil: Impacts on Household Income and Economic Activity" Anjali SHARMA (University of Maryland), "An Input-Output based Analysis Patiene PASSONI (Federal University of Rio de Janeiro), "Input-Output Model of the Labor Impacts of Clean Energy Transitions in India" in the Context of Relative Prices: the Implication of Deflation Methods for Carolina SILVA RIBEIRO (Federal University of Bahia), "Effects of Wind Technical Coefficients“ Energy Input on the Sectors of Economic Activity in the Semiarid Simone GRABNER (Gran Sasso Science Institute), "Interregional Input- Region of Bahia" Output Linkages and Relatedness as Drivers of Regional Diversification: Heran ZHENG (Norwegian University of Science and Technology NTNU), Evidence from United States Counties" "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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Sir Richard Stone Prize for the ESR publications in 2017 and 2018

Sir Richard Stone Prize is awarded every other year for the best Selection procedure: paper(s) that was submitted and accepted for publication in IIOA's journal Economic Systems Research in the two consecutive volumes. The prize is donated by Francis & Taylor, The first round short-listing to four papers: the Publisher of the journal. (See the list of past awardees here) Out of all papers published in ESR in 2017 and 2018, the pool of papers was shortlisted to four finalists, which This year, the jury has decided to award the prize to the - had at least one vote from all jury members; following two papers of exceptional qualities. Congratulations!! - was selected #1 by one of jury members

Jury member of Sir Richard Stone Prize, 2020 The final decision The four papers were given rankings, from which the top two papers were selected as winners. Randall Jackson (Chair) Clopper Almon Francesca Severini Kirsten Svenja Wiebe Haiyong Zhang

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Why has China’s vertical specialization declined? Applicability of a spatial computable general equilibrium model to assess the short-term economic Yuwan Duan, Erik Dietzenbacher, Xuemei Jiang, Xikang impact of natural disasters Chen & Cuihong Yang Yoshio Kajitani & Hirokazu Tatano, Economic Systems Economic Systems Research, 30:2, 178-200, 2018 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. Review summary: The authors provide an excellent example of the versatility and utility of In this paper, the authors provide an important contribution to the structural decomposition analysis in an adaptation of the method to an literature on the choice of and effectiveness of disaster impacts assessment of the relative importance of alternative factors that have assessments approaches, with a specific focus on the role of estimated led to the decline of vertical specialization in China. Their analysis elasticities of substitution relative to the analytical timeframe. They decomposes the changes in China's vertical specialization share into the quite effectively situate their research within the context of the effects of 14 components, identifying the substitution of imported relevant literature, and provided an exceedingly clear and concise intermediates with domestically produced intermediates” as “the main description of the salient aspects of their model. their work supports driver for China's declining vertical specialization share.” Starting from the conclusion “that plausible settings can make CGE models suitable the idea driving the research to the comments of its results, the all for disaster impact analysis, at least for short-run cases.” The jury content is very clear and of a high level, especially regarding the deemed this paper to be a significant contribution to the model description of the dataset and the structural decomposition approach. validation literature. Their "results imply that improving the quality and competitiveness of domestic intermediates may be an efficient way to upgrade a country's role in" global value chains. It also provides important implications for other development countries to actively move up the GVCs. In selecting this paper for the award, the jury emphasized the value of a demonstration of the flexibility of spatial decomposition analysis in application to new problem domains. 7 Newsletter Number 45, August 2020

Messages from awardees

Yuwan Duan Yoshio Kajitani Associate Professor Professor, School of International Trade and Economics, Central University of Faculty of Engineering and Design, Kagawa University Finance and Economics “We are very honored to receive the Sir Richard Stone Prize. The “We are overwhelmed with gratitude to have been selected to receive awarded paper is an outcome of long-term discussions not only the Sir Richard Stone Prize. We are deeply honored. This award is a between the authors but also with many experts of I-O and CGE high degree of recognition of our paper, and also strengthens my modelling. Especially, a series of sessions on disaster impact analysis confidence in devoting my rest of life to scientific research. I would like in the IIOA annual meetings gave us precious occasions to meet with to express my sincere gratitude to those who helped us in this paper the specialists in this field. We hope the paper replies to many of and my research career. I also hope that this recognition of our work practical questions raised in the sessions, in applying interindustry can serve as an inspiration to others in the field. This paper examined types of modeling to natural disasters. Our special thanks are due to the causes and implications of the decline in Chinese vertical Profs/Drs. Stephanie Chang, Yasuhide Okuyama, Jan Oosterhaven, specialization in recent years. We find that the substitution of imported Adam Rose, Albert Steenge and many others for the discussions to intermediates with domestically produced intermediates was the main our presentations and Prof. Michael Lahr and anonymous reviewers driver, which suggests an upgrade of China's role in the Goble Value for constructive feedbacks and supports at the review process. We Chain. However, if the study was for this year, then COVID-19 should also greatly appreciate the encouragements and insightful comments be the main culprit for the decline in global vertical production. I hope from Prof. Geoffrey Hewings and Dr. Nori Yamano, and Prof. Norio that we humans can eliminate the virus as soon as possible and wish Okada, who also gave us the chance to step in this research field that everyone will be able to ride out this epidemic safely and (engineering-economics modeling) almost 20 years ago. healthily.” While appreciating many good lucks, we cannot help thinking that the Covid-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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Published papers and books in IOA and related methods

remittances (the largest global path for Attary, N., Cutler, H., Shields, M. and van de Latest ESR articles remittances is that from the US to Mexico), but Lindt, J. W. The economic effects of financial relief that not all do (e.g. Canada does not). We stop delays following a natural disaster. Economic short of making strong policy recommendations. Economic Systems Research Systems Research, 32(3): 351-377. Instead, we suggest that more attention be paid to the veracity of remittance estimates. Journal of the IIOA In the U.S. the economic damages of natural Volume 32, Issue 3, 2020 Giammetti, R. Tariffs, domestic import disasters have increased substantially over time. substitution and trade diversion in input-output While private insurance payouts tend to arrive production networks: an exercise on Brexit. relatively quickly, federal recovery monies are Ferreira, J. P., Lahr, M., Ramos, P. and Economic Systems Research, 32(3): 318-350. often allocated unevenly, with some communities Castro, E. Accounting for global migrant waiting years to receive previously designated remittances flows. Economic Systems Research, In this paper we employ the World Input–Output funds. We examine the costliness of delay by 32(3): 301-317. Database to develop a multi-sector inter-country linking an economic model of the Joplin, Missouri economy to a civil engineering model that Migrant remittances are important to some model that allows us to identify the channels replicates the damage from a tornado that countries. According to the World Bank, they through which the trade effects of Brexit would devastated the community in 2011. Building comprise more than 30% of the GDP of propagate. The inclusion of global value chains damage estimates from the natural hazard and Kyrgyzstan, Tonga, Tajikistan, Haiti and Nepal. and indirect Brexit effects in the model leads to engineering models are translated into capital Compared to official development aid or foreign estimates that diverge with the results of the main stock losses, which subsequently impact the local direct investment, remittances have lately literature. Indeed, we found that Brexit could be economy through lost output. We examine become a prime income stream for less- risky and costly not only for the UK but also for several different recovery paths, with a focus on developed nations. In this paper, we analyze the many EU countries. Furthermore, we develop a differences in the timing of recovery assistance. net spillover and feedback effects from the second model and present the first empirical Our results show that delaying financial consumer demand generated in migrants’ home analysis on the consequences of domestic import assistance can have important, irretrievable countries. We use World Bank estimates of substitution and trade diversion policies in Input– adverse outcomes in the short run. remittances and the World Input-Output Output schemes. We found that allowing sectors Database (WIOD) for the investigation with so- and countries to partly substitute foreign products, called ‘hypothetical insertion’ as the tool of leads to significantly lower losses for both macro- choice. We find that even some developed regions: the UK and EU27 would lose, at worst, nations, like the US, likely benefit from the 0.28 and 0.5 percent of value-added, respectively. 9 Newsletter Number 45, August 2020

Tiziano, D., Tuninetti, T., Laio, F. and Ridolfi, Miroudot, S. and Ye, M. Multinational production Tsionas, M. G. Bayesian input–output table L. Tools for reconstructing the bilateral trade in value-added terms. Economic Systems Research, update using a benchmark LASSO prior. network: a critical assessment. Economic 32(3): 395-412. Economic Systems Research, 32(3): 412-427. Systems Research, 32(3): 378-394. Micro-level evidence has emphasised that firms We propose updating a multiplier matrix subject This study critically assesses the performances that produce across countries are responsible for to final demand and total output constraints, of the Gravity Model (GM) and of the RAS a large share of international exchanges of where the prior multiplier matrix is weighted algorithm for the bilateral flow intensity goods, services, capital and knowledge. At the against a LASSO prior. We update elements of the estimations and link prediction. The main aggregate level, quantitative studies that look at Leontief inverse, from which we can derive novelty is the application of these multinational production generally rely on the posterior densities of the entries in input–output methodologies to reconstruct the network concept of sales of foreign affiliates, which is a tables. As the parameter estimates required by topology with a minimum amount of gross concept that includes the value of far exceed the available observations, many zero information. Moreover, we implement a multi- intermediate inputs. In the case of trade, the entries deliver a sparse tabulation. We address layer analysis to provide a comprehensive and literature has recently shifted to a value-added that problem with a new statistical model wherein robust framework, by testing several food approach that can distinguish in exports the we adopt a LASSO prior. We develop novel commodities, over the period 1986–2013. The contribution of the different economies supplying numerical techniques and perform a detailed main outcomes suggest that the RAS algorithm inputs. In this paper, we propose a framework Monte Carlo study to examine the performance of outperforms the Gravity Model in the that decomposes value-added in domestic sales the new approach under different configurations estimations of the bilateral trade flows, in order to trace its origin and remove any of the input–output table. The new techniques are importantly guaranteeing the balance double-counting. We find that an intercountry applied to a 196 × 196 U.S. input–output table for constraints (i.e. global import equals global input–output table split on ownership can yield 2012. export), while GM generates lower relative an analysis of activities of foreign affiliates of errors, but it underestimates total global flows. multinational firms in value-added terms. Both RAS and GM can be applied to accurately recover the network architecture. The implications of our study encompass a wide range of applications: systemic-risk assessment, creation of new databases, and scenario analyses to support policy decisions.

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Cai, J. and Leung, P. A note on linkage between Economic Systems Research Mainar-Causapé, A. J., Philippidis, G. and gross value added and final use at the industry Sanjuán-López, A. I. Constructing an open level. Economic Systems Research, 32(3): 428- Journal of the IIOA access economy-wide database for bioeconomy 437. Latest articles (up to 27-Jul.) impact assessment in the European Union member states. Economic Systems Research. Gross value added (GVA) is a common indicator of an industry/sector’s economic performance. Tsujimura, M. and Tsujimura, K. Flow-of-funds The bioeconomy encompasses the extraction, While an economy’s total GVA is always equal to structure of the U.S. economy 2001–2018. processing and transformation of renewable its total final use, an individual industry/sector’s Economic Systems Research. biological resources and waste streams, connected GVA is usually not equal to its final use. Yet an to activities as diverse as food, feed, energy and accounting identity between an industry/sector’s Great inventions and substantial productivity manufacturing. Under the auspices of the GVA and the final use of multiple growth of the Roaring Twenties brought European Union’s ‘Green Deal' strategy, this broad industries/sectors can be established by a gross unprecedented prosperity to the United States. collective of sectors is promoted as a cornerstone value added-final use (GVA-FU) matrix. This After Black Thursday in the fall of 1929 however, for achieving sustainable growth. Progress in paper derives the GVA-FU matrix in the Leontief the U.S. economic landscape changed developing ex-ante tools of economy-wide demand-driven model and its equivalence in the dramatically. To ensure that the bitter experience modelling analysis to assess its performance is, Ghosh supply-driven model and interprets the of the Great Depression does not recur, Wesley however, hindered by a paucity of consistent and matrix from different perspectives. The GVA-FU Mitchell and Morris Copeland, the architects of comprehensive data. To overcome this matrix can help policymakers and practitioners flow-of-funds analysis, urged a better shortcoming, the construction steps for a new set better understand an industry/sector’s percentage understanding of the circulation of funds, the of open access social accounting matrices (dubbed of gross domestic product (GDP) – the underlying means of payment. The new century has so far ‘BioSAMs’) is described for a detailed and measure behind the United Nations Sustainable brought us many technological innovations and comprehensive selection of traditional and Development Goals (SDGs) Indicator 14.7.1 – new ways of doing business. The objective of the contemporary bio-based accounts for each of the from the demand-side perspective and facilitate paper is to find out if and how well the funds have EU member states. To illustrate its potential, a its proper use for policy and planning. The GVA- been flowing in the U.S. economy over the past structural analysis based on three different and FU matrix can become a standard component of two decades, using the flow-of-funds matrix complementary methods (Rasmussen-Jones, the input–output apparatus for multiple (payer-payee matrix) proposed by Tsujimura and hypothetical extraction method and eigenvector) applications. Tsujimura (2018). A flow of funds analysis of the is performed to classify bio-based sector wealth U.S. quantitative easing. The industrial revolution generating properties and to identify high of the new century does not seem to have enough performance (‘key') sectors. momentum circulating funds, the lifeblood of the economy. 11 Newsletter Number 45, August 2020

Parys, W. David Hawkins and the making of the Mushkudiani, N., Pannekoek, J. and Zhang, L. Ciaschini, C. and Chelli, F. M. Evaluating the Hawkins-Simon conditions. Economic Systems Uncertainty measures for economic accounts. impact of Violence Against Women in the Research. Economic Systems Research. macroeconomic Input–Output framework. Economic Systems Research. The Hawkins-Simon conditions, which are The problem of adjusting large systems of necessary and sufficient for the viability of estimated economic or social accounts such that Violence against women and girls (VAW&G) has input–output systems, are described in many they fulfill known functional relationships can be progressively become an emergency issue in encyclopedias, textbooks and papers, but quite complex. For such complex systems, many European countries and a relevant topic of always without historical details about the evaluating the accuracy of the estimates after the public discussion. In this paper, we attempt to philosopher David Hawkins. The rich literature adjustment is difficult since these estimates are insert this theme within a model for on the history of input–output economics has defined by unadjusted initial estimates, the macroeconomic policy design and evaluation. neglected Hawkins, probably because he spent accounting equations and the adjustment method. Special attention is devoted to the assessment of only a few years among the economists. My In this paper, we consider such accounting distortions in the allocation of public expenditure paper fills this gap. By using the relevant systems as a single entity and develop scalar generated by VAW&G, in terms of gains and losses archival material on Hawkins, Simon, and uncertainty measures that are based on the first in aggregate total output. We adopt a Leontief, I correct and expand some scarce two moments of the joint distribution of final macroeconomic input–output approach by adding remarks on Hawkins by Simon and Samuelson. adjusted estimates. Scalar measures can help to to the framework an industry that produces care I discuss Hawkins’s three remarkable effectively communicate to the users the relevant services to victims of VAW&G. The resulting model contributions to economics. First, Hawkins’s uncertainty of disseminated macro-economic is integrated with the public expenditure dynamic input–output model in Econometrica in accounts and can assist the producer in choosing reallocations that emerge as a result of the 1948 scooped Leontief. Second, I show how and improving adjustment method and input progressive elimination of violence. It is, thus, a the correspondence between Hawkins and estimators. The proposed approach is illustrated simulation tool for determining total output gains Simon created their famous joint note in both analytically and by simulation. Applications to or losses that emerge from the reallocation of Econometrica in 1949. Third, an overlooked supply and use tables and to time series data are public expenditures as VAW&G fades. chapter in Hawkins’s 1964 book The Language presented. of Nature discussed the commodity values of commodities, generalizing Marx’s labour values and the Technocrats's energy values.

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Wang, Z., Zhang, Y., Niu, M. and Fan, Z. How Södersten, C. H. and Lenzen, M. A supply-use Carvalho, T. S., Santiago, F. S. and Perobelli, important is domestic and foreign demand for approach to capital endogenization in input–output F. S. Demographic change in Brazil and its impacts China’s income growth by business function?. analysis. Economic Systems Research. on CO2 emissions. Economic Systems Research. Economic Systems Research. Input–output analysis currently treats capital In recent years, the debate about demographic This paper explores the contribution of domestic investment as exogenous to the inter-industry changes and its impacts on the economy has and foreign demand to China’s income growth system despite capital goods being used further in increased. The growth in the relative share of by business function. To this end, we extend a production processes. Previous studies have elderly people in the age pyramid may occur in single country input–output approach to a applied the Leontief calculus to include impacts of the coming decades in many parts of the world, global multi-country setting, and further capital in footprint calculations. Here, we adopt a and their effects on the composition of redefine the measure via forward linkages. We supply-use approach to incorporating capital into consumption, notably on energy demand and also propose chaining structural decomposition footprint calculations, by constructing capital emissions, are not yet known. This article analysis to identify the role of domestic and supply-use tables (KSUTs) that enable estimates the changes in the pattern of foreign demand in functional income changes differentiating capital goods. As the new KSUT consumption in Brazil due to the changes over 1999–2011. Using the World Input–Output formalism is compliant with the Supply-Use projected in the age pyramid in 2050 and the Database combined with Labor Occupations formalism in the UN's System of National consequences of these changes on CO2 emissions. Database, we distinguish functional activities in Accounts, we can keep full transparency For this, projections will be made using an input– production, management, marketing and R&D. throughout the process of calculating impact output model for the Brazilian economy for the This enables us to find that domestic and multipliers. We demonstrate the usefulness of the year 2010 considering 67 productive sectors and foreign final demands, especially the former, KSUT framework in a case study of the Australian six age groups. The results suggest that emissions jointly lead to China’s income growth by economy, with environmental extensions from the grow less than proportionally to population growth business function. Dynamically, the generally EXIOBASE3 database. If consumption-based and that the participation of sectors such as fuels upward trends in China’s income hold in the emissions were considered for the UN's and transport shows a small decrease in the aggregate as well as by industry and business Framework Convention on Climate Change, the consumption vector for 2050. function. We also find that China’s income KSUT framework would provide a consistent and growth is quite heterogeneous across industries transparent foundation for working out countries’ and business functions. responsibility for carbon emissions from both current use and capital investment.

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Xiao, H., Meng, B., Ye, J. and Li, S. Are global Hong, W., Chai, H., Chen, Y. H. H., Reilly, J. M., Temursho, U. On the Euro method. Economic value chains truly global?. Economic Systems and Paltsev, S. Will using newer input–output Systems Research. Research. data for general equilibrium modeling provide a better estimate for the CO2 mitigation cost?. This paper critically examines the Euro method Economic Systems Research. usage for the purposes of updating supply and Are global value chains (GVCs) truly global or use tables (SUTs) and/or input–output tables. Its are they more of a regional phenomenon? We known restricted applicability to only provide a new perspective on this issue using We provide a critical evaluation about how unnecessarily aggregated and symmetric SUTs network analysis based on the measure of trade updating the input–output data of a computable (and not their underlying rectangular versions) is in value added. We first show that GVC activities generation equilibrium model can affect policy already an issue of concern. However, by can be consistently identified and grouped into results, an assessment that is rarely done in studying analytically the nature of Euro's three types of networks, i.e. traditional, simple, existing literature. Specifically, we explore how adjustments of the SUT elements and empirically and complex trade networks, according to the datasets with different fossil energy cost shares assessing some of its underlying assumptions, number of times that factor contents cross alter results of policy simulations that aim at including newly revealed ones, it is concluded national borders in global production sharing. reducing CO2 emissions. We prove analytically that the Euro method is a largely ad hoc Further investigation on the changes in topology that a sudden fossil fuel price surge, which updating procedure. Its recently claimed and structure of various networks reveals that, provides little time for adjustment through input superiority over the generalized RAS approach GVCs are more likely organized regionally and substitution, can lead to a higher CO2 mitigation (GRAS, or SUT-RAS) in the absence of industry dominated by large countries, like the US, cost. The finding is demonstrated empirically in output is challenged. It is shown that applying China, and Germany. However, at the sector a full-scale economy-wide model for a base the standard GRAS with exogenously given level, what GVCs look like largely depends on year with lower fossil fuel prices, contrasted estimates of industry outputs under such the perspective (supply or demand) and the type with results from a base year when fossil fuel restricted data-availability environment still of networks adopted. This can help better prices spiked. We then propose an adjustment outperforms the Euro method. understand the possible structural change of to resolve the issues of using input–output data GVCs brought by the US–China trade war and that embed abrupt fossil-fuel price hikes. the COVID-19 pandemic.

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Zhou, L. and Chen, Z. Are CGE models reliable Duan, Y., Ji, T. and Mei, D. Tariff costs embodied Gabela, J. G. F. On the accuracy of gravity-RAS for disaster impact analyses?. Economic in product prices: a dynamic analysis from global approaches used for inter-regional trade Systems Research. value chain perspective. Economic Systems estimation: evidence using the 2005 inter-regional Research. input–output table of Japan. Economic Systems This study investigates a fundamental issue of Research. computable general equilibrium (CGE) The present study examines a measure, the modeling: are CGE models reliable for embodied tariff, which is defined as the sum of all In contrast to international trade, it is still difficult measuring the economic consequence analysis tariffs imposed on intermediate inputs at various to find regional trade statistics within a nation. of disasters? We assess the outputs of CGE stages of productions. It captures the total tariff Given that the gravity model continues to be very analyses after controlling for various modeling costs in products in the context of the global value popular, we test two gravity-RAS approaches used factors such as data, type of model, and chain. We estimate the embodied tariff for 44 for interregional trade estimation: a standard one modeling mechanisms via a meta-analysis of economies and 56 sectors, decompose it by tariff and an extended version, which additionally 253 CGE simulations in 57 empirical studies. source, and also decompose its temporal changes estimates intra-regional flows. We assess the Our study arrives at three major findings. First, using structural decomposition analysis. The accuracy with the help of two measures and for we confirm that resilience significantly reduces embodied tariff is more than twice the size of the different sectoral aggregation levels. For that, we business disruptions from disasters. Second, traditional direct input tariff, indicating a non- use the survey-based 2005 interregional input– results using either real-world or hypothetical negligible value chain effect. This demonstrates an output table of Japan as a benchmark. Results data tend to vary substantially by hazard type. overall declining pattern over time, which reflects show high overall accuracy levels for the standard Third, results are quite sensitive to model a dominating effect of decreasing customs tariffs approach, better than when using international assumptions and modeling structure. Overall, over increasing international production data, albeit with heterogeneous errors for sectors we suggest that future impact assessments of fragmentation. Since 2011, however, the decline and regions. We further find that the results of a disasters should be conducted more cautiously in international production fragmentation has also multiregional input-output model are highly in terms of adopting appropriate data, models, decreased embodied tariffs. A country’s customs sensitive to the trade estimation approach and and shock scenarios, in order to improve the tariff is sizably translated into the embodied tariff that errors slightly increase for increasing sectoral validity of CGE modeling outcomes. of its own products, creating a competitive disaggregation levels. Results from an experiment disadvantage for domestic producers. based on a random number generator show how RAS influences results.

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Moya-Martínez, P., Bermejo, F. and del Haddad, E. A., Mengoub, F. E. and Vale, V. A. Allan, G. J., Connolly, K. and McIntyre, S. G. Pozo-Rubio, R. Hard times for long-term care Water content in trade: a regional analysis for Developing an electricity satellite account (ELSA): systems? Spillover effects on the Spanish Morocco. Economic Systems Research. an application to Scotland, UK. Economic Systems economy. Economic Systems Research. Research.

This paper aims at evaluating the virtual water Since the end of the last century, demographic Within the system of national accounts the content in trade in an intra-country perspective aging has led to an increased demand for new electricity sector is typically reported as a single and discussing potential tradeoffs between the social protection services. Universalizing these entry representing generation, transmission, use of natural resources and value added to meet the needs of the most vulnerable distribution and trade. The ways in which these creation. We develop a trade-based index that requires the design of policies that ensure the components interact with the economy differ reveals the relative water use intensities sustainability of the system. Consequently, the greatly, a feature lost within the standard associated with specific interregional and economic structure of a country and its accounting framework. In this paper we propose international trade flows. The index is calculated productive fabric are affected. Assessing the an Electricity Satellite Account (ELSA) approach to considering the measures of water and value impact of this growing demand is not an easy better understand the linkages between the added embedded in trade flows associated with task, although extended input-output models electricity sector and economy, with a particular each regional origin-destination pair using an can help. With this aim, we determine the focus on generation technologies. In developing interregional input-output matrix for Morocco spillover effects of the demand shocks arising this framework, we draw parallels with Tourism together with information on sectorial water use. from the increase in public spending allocated Satellite Accounts (TSAs). To illustrate the We add to the literature on virtual water by for the implementation of the Spanish long- practical steps in constructing ELSAs, we develop encompassing the subnational perspective in a term care system. The results reveal that such an ELSA for Scotland for 2012, and show how the country that shows a clear ‘climate divide’. spending proves efficient in sustaining 116,000 ELSA framework gives an improved understanding Furthermore, we contribute to the literature by jobs, most of which are in social work of the economic contribution of the electricity proposing an index that may be applied to activities, entailing a large amount of direct but sector, which is critical in improving the different economies to evaluate multidimensional low-skilled employment. In addition, 5,000 usefulness of such accounts for climate, energy, trade-offs associated with the pressure of specific million euros are generated in value added, and economic policy. including a fiscal return of 1,400 million euros. economic flows to the use of natural resources relative to its economic relevance.

16 Newsletter Number 45, August 2020

Reyes, F. A. On growth regimes, structural Steenge, A. E. and Reyes, R. C. Return of the Miroudot, S. and Ye, M. Decomposing value change and input coefficients. Economic capital coefficients matrix. Economic Systems added in gross exports. Economic Systems Systems Research. Research. Research.

The input-output (IO) model assumes that the A core ingredient of post-disaster input–output Several papers using intercountry input-output technical coefficient matrix changes as an recovery models is the reconstruction of lost tables have developed frameworks to economic system develops, following either of production capacity. Therefore, one would expect decompose value added in gross exports and two tendencies; one, the entries of the matrix a set of models endowed with capital coefficients to remove potential double-counting in shrink, due to increased efficiency on the matrices to be available for analysis. However, intermediate inputs. But these papers rely on production lines; two, they expand, while this is not the case, possibly due to earlier different definitions for the domestic value productivity gains concentrate in the use of negative experiences with such models. added, foreign value added and double- factors. Further, the economic structure grows Nevertheless, in this paper, we aim to show that counting terms, depending in particular on the more complex, as industries become more there is a class of problems that can be perspective from which gross exports are tightly (vertically) integrated and the addressed successfully with a dynamic input– decomposed (world level, country level or development process evolves. Both phenomena output model with a fully functioning capital bilateral level). At this stage, it is very difficult have seldom been analysed together, despite coefficients matrix. We put forward that if for any user of value-added trade statistics to the apparent connections they may have with reconstruction is tightly planned, investment and know what is calculated and which type of the evolution of economic structures and the therewith gross output essentially become pre- decomposition should be used. In this paper, development opportunities countries may face. determined. This also means that traditional final we provide a general framework that relies on This paper intends to examine the implications demand becomes an endogenous residual, with extraction matrices to unambiguously and of these tendencies for the evolution of the model being transformed into a distribution consistently define domestic and foreign value- economic systems in regards to the dynamics and allocation model. We begin with a reordering added terms in the world, country and bilateral the growth process may adopt. Two indicators of variables and equations as proposed in perspective. This framework allows us to are presented here useful to characterise such Leontief’s dynamic inverse, and then move on classify existing decompositions based on the dynamics, later tested on the Mexican IO data. directly to the newly proposed model. perspective taken and their definition of Suggestions for further work are given. double-counting. We also indicate the most relevant decompositions for different types of trade analysis.

17 Newsletter Number 45, August 2020

Severini, F., Pretaroli, R., Socci, C., Zotti, J. Highlights in journals Lenzen, M. et al. (2020) Global socio-economic and Infantino, G. The suggested structure of losses and environmental gains from the final demand shock for sectoral labour digital Coronavirus pandemic. PLOS ONE. skills. Economic Systems Research. Temursho, U. and Miller, R. E. (2020) Distance- based shared responsibility. Journal of Cleaner On 3 April 2020, the Director-General of the WHO International data seem to confirm that countries Production. stated: “[COVID-19] is much more than a health with a relative abundancy of highly-skilled labour crisis. We are all aware of the profound social and with digital competences grow faster than others. This paper presents the global multi-regional economic consequences of the pandemic (WHO, For this reason, digital competences and skills in extension of the upstream and downstream shared 2020)”. Such consequences are the result of general are progressively assuming a central role responsibility input-output (IO) frameworks and counter-measures such as lockdowns, and world- in labour market policies. In this article, we show proposes to use distance-based sharing wide reductions in production and consumption, the potential of the disaggregated multisectoral parameters in their applications. The extent of amplified by cascading impacts through analysis with the macro multipliers approach as a producers’ control over production processes is international supply chains. Using a global multi- tool of economic policy. Such analyses allow approximated by the inverse (function) of the regional macro-economic model, we capture direct identifying a set of endogenous policies in which average distance of producers from primary inputs and indirect spill-over effects in terms of social and specific objectives do not clash with growth providers along the entire input demand chain. economic losses, as well as environmental effects objectives. The identification and the Similarly, the extent of producers’ influence over of the pandemic. Based on information as of May quantification of the macro multipliers is based advertising and sales is approximated by the 2020, we show that global consumption losses on an extended multi-industry, multi-factor and inverse (function) of the average distance of amount to 3.8$tr, triggering significant job (147 multi-sector model, which accounts for the producers from final users along the output supply million full-time equivalent) and income (2.1$tr) representation of the income circular flow as in chain. Our empirical application of the shared losses. Global atmospheric emissions are reduced the social accounting matrix (SAM). The SAM responsibility approaches focuses on CO2 by 2.5Gt of greenhouse gases, 0.6Mt of PM2.5, and constructed for this exercise allows for a proper emissions, using the 2005 world IO table available 5.1Mt of SO2 and NOx. While Asia, Europe and the disaggregation of the labour factor by formal from WIOD. In the empirical tests of aggregation USA have been the most directly impacted regions, educational attainment, digital competences and (in)variance of country-level shared and transport and tourism the immediately hit gender for the case of Italy. responsibilities, it is found that the shared sectors, the indirect effects transmitted along responsibilities are more robust to aggregation international supply chains are being felt across the See all latest articles, when the sharing parameters are pegged to entire world economy. These ripple effects distance rather than to value added or final highlight the intrinsic link between socio-economic volumes and issues demand. All in all, our results further substantiate and environmental dimensions, and emphasise the the robustness of the shared responsibility challenge of addressing unsustainable global accounting principle, and this is important if the patterns. How humanity reacts to this crisis will principle is to become standard or alternative define the post-pandemic world. (complementary) reporting practice. 18 Newsletter Number 45, August 2020

analysis showed that most regions are already net This paper introduces an approach to analyze Wilting, H. C., Schipper, A. M., Ivanova, O., importers of GHG emissions and biodiversity the impact of large-scale policy shocks with Ivanova, D. and Huijbregts, M. A. J. (2020) losses, we conclude that it is increasingly special focus on international trade and global Subnational greenhouse gas and land‐based important to address the role of trade in national energy conversion chains. The approach relies biodiversity footprints in the European Union. and regional policies on mitigating GHG emissions upon an empirical meso-economic equilibrium Journal of Industrial Ecology. and averting further biodiversity losses, both model and a physical supply and use model of within and outside the region itself. To further Insights into subnational environmental impacts the energy conversion chain. The link between increase the policy relevance of subnational and the underlying drivers are scarce, especially the models is provided by the Multi-Factor footprint analyses, we also recommend the from a consumption‐based perspective. Here, we Energy Input-Output model. quantified greenhouse gas (GHG) emissions and compilation of more detailed subnational MRIO The proposed approach is formalized and applied land‐based biodiversity losses associated with final databases including harmonized environmental to assess the economic and energy impact of consumption in 162 regions in the European Union data. different Brexit scenarios, returning the related in 2010. For this purpose, we developed an impact in terms of changes in value added environmentally extended multi‐regional input– generation, change in production of energy output (MRIO) model with subnational European Rocco, M. V., Guevara, Z., Heun, M. K. (2020) carriers and change in energy-related information on demand, production, and trade Assessing energy and economic impacts of large- CO emissions. It is found that a highly structures subdivided into 18 major economic scale policy shocks based on Input-Output 2 disaggregated picture of the energy supply chain sectors, while accounting for trade outside Europe. analysis: Application to Brexit. Applied Energy. provides fundamental insights to assess the We employed subnational data on land use and physical viability of economic scenarios. national data on GHG emissions. Our results The assessment of the prospective, economy- Therefore, the proposed method reveals revealed within‐country differences in per capita wide, economic and environmental impact of important synergies that may arise from the GHG and land‐based biodiversity footprints up to large-scale policy shocks is currently performed joint application of the economic and physical factors of 3.0 and 3.5, respectively, indicating that via general equilibrium models, relying on models, hence becoming a suitable candidate to national footprints may mask considerable background input–output data usually provide insights and guidance for policy making. subnational variability. The per capita GHG characterized by a very aggregated definition of footprint increased with per capita income and the energy conversion chain. Thus, such models income equality, whereas we did not find such are not always able to properly assess the impact responses for the per capita land‐based of policy shocks on the energy conversion chain. biodiversity footprint, reflecting that extra income On the other hand, empirical models based on is primarily spent on energy‐intensive activities. physical data provide a detailed picture of the Yet, we found a shift from the domestic to the energy conversion chain but are unable to foreign part of the biodiversity footprints with comprehensively address energy-economy rising population density and income. Because our interactions. 19 Newsletter Number 45, August 2020

Rocco, M. V., Golinucci, N., Ronco, S. M. and most effective way to reduce the global carbon which we overcome the classical dichotomy Colombo, E. (2020) Fighting carbon leakage emissions, avoiding the carbon leakage between prices and quantities thanks to the through consumption-based carbon emissions phenomenon which may occur in economies novelty of connecting consumption demand with policies: Empirical analysis based on the World regulated by Production-Based policies. Indeed, the changes in private income levels that would Trade Model with Bilateral Trades. Applied an imposed reduction in CO2 emissions embedded follow from the enacted eco-tax. We isolate Energy. in EU final demand through a Consumption-Based income effects by keeping the given productive Accounting policy would result in a global structure of the economy as unaltered as Policy initiatives towards reduction of CO2 emissions reduction up to almost 1.2 Gton. possible. In this sense, the proposed model has a On the other hand, an imposed reduction in direct bit of a neo-ricardian flavor. We implement the CO2 emissions implemented so far are grounded on the so-called Production-Based paradigm: EU CO2 emissions according to a PBA approach model and check the mitigation effectiveness of this approach allocates responsibility of would result in an overall increase in global two different eco-tax policies using recent tabular emissions to countries that directly caused such carbon emissions up to almost 0.8 Gton. data for the Spanish economy in 2015. The main emissions, without taking into account all the conclusion is that we would not observe double indirect contributions to CO emissions caused benefits, even when all eco-tax collections are 2 Sancho, F. (2020) The mitigation potential of eco- recycled back into the economy. outside country’s borders, eventually leading to taxation on carbon emissions: income effects the so-called carbon leakage phenomenon. In under downward rigid wages. Environmental this paper, the alternative Consumption-Based Economics and Policy Studies. approach is proposed, and its effectiveness assessed: according to this approach, policy Eco-taxation is the preferred market based tool initiatives allocates responsibility for for achieving mitigation of CO2 emissions and CO2 emissions proportionally to the fostering sustainability. It works through tax- CO2 emissions embedded in goods and services induced changes in the price of polluting activities required by industries as inputs for production. while ideally transferring the environmental cost Global environmental and economic to emitters and users. The initial eco-tax signaling consequences of carbon emissions reduction is transmitted and further amplified to the rest of policies, applied at the European level based on the economy through the structure of cost both Production- and Consumption-Based interactions. In particular, real-world economies paradigms, are comparatively assessed based work under wage adjustment rules that reflect on the World Trade Model with Bilateral Trades. downward rigidity in labor costs when facing Results of this study suggest that defining rising prices. These common rules may affect the CO2 emissions policies based on a mitigation capacity of the eco-tax policies. We Consumption-Based paradigm seems to be the study this issue using an inter-industry model in 20 Newsletter Number 45, August 2020

Nansai, K. et al. (2020) Affluent countries improvements in areas like poverty reduction installation of wind energy farms in 10 US states. inflict inequitable mortality and economic loss and public health. This inequitable situation The economic impacts were calculated by feeding on Asia via PM2.5 emissions. Environment needs to be redressed through introduction of the USLab with data obtained from the Jobs and International. clean energy and other types of technological Economic Development Impacts (JEDI) Wind assistance to help achieve United Nations model published by National Renewable Energy This research sets out to quantify the mortality Sustainable Development Goals 7, 10 and 13. Laboratory (NREL). The JEDI wind model provides and economic loss in individual Asian countries Such as move is essential if premature infant the change in local economic data such as the number of new jobs created and increase of caused by the PM2.5 emissions induced by the deaths are to be curtailed. consumption of the world’s five highest- energy-related products in each region in the consuming countries (US, China, Japan, final demand and value-added. The data about Germany, UK). In 2010 alone, the economic Faturay, F., Vunnava, V. S. G., Lenzen, M. and final demand and value-added change was used impact of these five countries’ consumption Sing, S. (2020) Using a new USA multi-region with the US-MRIO model to account for the multi- caused a loss of almost 45 billion US dollars input output (MRIO) model for assessing economic regional economic impact across US due to due to the premature deaths of more than 1 and energy impacts of wind energy expansion in installation of wind energy farms. The year of million people in Asia, including 15 thousand USA. Applied Energy. wind farm installation was set to 2017 and a US- children younger than 5 years old. The MRIO for 2017 was generated to calculate the percentage ratio of economic loss to value- economic impact. The total economic impact was The share of wind energy in the US energy supply found to be 26 billion dollars of which 3 billion added driven by consumers via trade differed has been steadily increasing in the last two greatly among the impacted countries. For the dollars was associated with the states where no decades. With new wind energy farms being new wind energy capacity was installed. US, the highest percentage loss was 4.1% in installed in various states of the country, local Laos, followed by 2.0% in Bangladesh, both Installation of new energy production capacity and multi-regional economic disruptions are also results in “change in energy consumption” markedly higher than the figures for the more bound to take place. The multi-regional economic developed countries, such as 0.21% for Japan across US. Using the US-MRIO model and the impacts of installing new wind farms was energy intensity of manufacturing sectors, the and 0.18% for Korea. This reflects the determined using the US multi-region input- inequitable value chain existing between energy consumption increase due to addition of output (US-MRIO) model that has been wind farms was found to be about 6952 trillion of consumer countries and impacted countries, developed, also called the USLab. Currently, there and implies that developing countries are btu for the total change in economic throughput. is a lack of multi-regional impact assessment of Primary metal manufacturing and Machinery obtaining value-added in exchange for wind energy expansion in the US. In this article, unintentionally increased health risks, delaying manufacturing sectors stood out amongst other we use the US-MRIO to determine regional and manufacturing sectors with considerable change their development and potentially creating a sectoral spill-over effects resulted from vicious circle that hinders much-needed in energy consumption with an increase of 3074 trillion of btu and 1537 trillions of btu. 21 Newsletter Number 45, August 2020

city levels to demonstrate the usefulness and Wakiyama, T., Lenzen, M., Geschke, A. flexibility of the system. Their validity was the rate at which emissions can be reduced. Bamba, R. and Nansa, K. (2020) A flexible confirmed by comparing results with the original Self-healing asphalt is a new type of multiregional input–output database for city- statistics. The prefecture-level MRIO table technology that will reduce the need for fossil level sustainability footprint analysis in Japan. accurately reflected the economic structure of fuels over the lifetime of a road pavement, at Resources, Conservation and Recycling. Japan’s 47 prefectures by identifying the same time as prolonging the road lifespan. In this study we have assessed the Understanding environmental and social differentiating prefectural features, distinguishing benefits of using self-healing asphalt as an footprints at the city level through multiregional between, for example, manufacturing-oriented and alternative material for road pavements input-output (MRIO) analysis is a key to service-oriented prefectures. The city-level MRIO employing a hybrid input–output-assisted designing policy aimed at mitigating the direct table appropriately characterized various economic Life-Cycle Assessment, as only by determining and indirect impacts of a city economy on activities and accurately reflected the locational the plausible scenarios of future emissions will sustainability. However, since the quantity of features of a city within the prefecture. The role of policy makers identify pathways that might data required is substantial, compiling city-level stakeholders in data management and further achieve climate change mitigation goals. We MRIO tables in Japan and updating them yearly improvement as well as possible applications of have concluded that self-healing roads could involves a huge amount of labor-intensive and the Japan IELab, including life cycle assessment prevent a considerable amount of emissions time-consuming work. The authors have and disaster analysis, are discussed. and costs over the global road network: 16% developed a cloud-computing platform called lower emissions and 32% lower costs the Japan Industrial Ecology Laboratory (IELab) Rodríguez-Alloza, A. M., Heihsel, M., Fry, J., compared to a conventional road over the that is highly flexible in terms of its sectoral and Gallego, J., Geschke, A., Wood, R. and Lenzen, lifecycle. regional resolution, which enables the user to M. (2020) Consequences of long-term build customized Japanese MRIO tables in infrastructure decisions—the case of self-healing accordance with the user’s specific objectives. roads and their CO2 emissions. Environmental The Japan IELab embeds over 145 types of Research Letters. statistical information on regional economic activities, including input-output tables at the What could be the reduction in greenhouse gas prefecture and city level. These data serve as emissions if the conventional way of maintaining constraints in the optimization process to build a roads is changed? Emissions of greenhouse gases customized MRIO table. With IELab, the user must be reduced if global warming is to be can freely select cities, sectors and years from avoided, and urgent political and technological 1894 municipalities and 4266 sectors for the decisions should be taken. However, there is a years 2005 through 2016. As a case study, two lock-in in built infrastructures that is limiting MRIO tables were built at the prefecture and 22 Newsletter Number 45, August 2020

Wang, C., Malik, A., Wang, Y., Chang, Y., production in China’ economic system, first- and non-traded parts. We also use a multi-regional Lenzen, M., Zhou, D., Pang, M. and Huang, generation technology offers a projected 1.92 input-output database for performing a structural Q. (2020) The social, economic, and million yuan in economic growth and job creation decomposition analysis (SDA) to investigate the of 2.06 full-time equivalent, while the second- environmental implications of biomass ethanol factors contributing to changes in CO2 emissions. production in China: A multi-regional input- generation technology offers a lower energy We find that Thailand continually stood out as a net consumption (1.19 TJ). In most scenarios, the output-based hybrid LCA model. Journal of carbon exporting country. CO2 embodied in exports Cleaner Production. upstream sectors account for more than half of accounted, on average, for 40% of domestically the TBL impacts of biofuel production. This study produced emissions. Our SDA results suggest that As an alternative to conventional liquid fuels, helps to quantify the TBL impacts associated with traded and non-traded emissions grew mainly due bioethanol holds the promise of transitioning the gasoline-to-bioethanol transition in China, to increasing per-capita consumption in Thailand to a clean and low-carbon energy future. envisions the green opportunities for impact and abroad. The retarding effect from energy China’s bioethanol industry is at its nascent mitigation, and sheds light on the potential efficiency improvement was significant but not stage. In this study, we developed a hybrid life direction for robust planning and policy making to sufficient to reduce emissions. cycle assessment model that integrates the advance the bioethanol industry’s development. multi-regional input-output (MRIO) approach and specific production data to evaluate the Ninpanit, P., Malik, A., Wakiyama, T., social, economic, and environmental (i.e. the Geschke, A., and Lenzen, M. (2019) Thailand’s triple-bottom-line, TBL) impacts of the energy-related carbon dioxide emissions from bioethanol sector in China’s economic systems. production-based and consumption-based The MRIO model was constructed using the perspectives. Energy Policy. 2012 MRIO table, and the data for the typical technologies of bioethanol production were Over the past few decades, Thailand has been leveraged. To be specific, we evaluated one of the highly open economies and one of the employment creation, economic stimulus, and most successful countries in applying the export- energy use of bioethanol production in 28 led growth model. At the same time, carbon scenarios in Henan province. The results show dioxide (CO ) emissions released in Thailand that compared to petroleum refining, 2 tripled between 1990 and 2015. To examine how bioethanol production is more effective for international trade plays a role in shaping economic stimulus and energy saving, but less Thailand’s CO emissions inventory, we compare effective at job creation. The impact of 2 emissions under both production-based and bioethanol production varies by technologies. consumption-based accounting over 1990–2015 For every 1 million yuan of bioethanol and disaggregate total CO2 emissions into traded 23 Newsletter Number 45, August 2020

Michel, B., Hambÿe, C., Hertveldt, B. and Trachez, G. (2020) Extended supply and use Database tables for Belgium: where do we stand? An overview of achievements and outstanding issues. Eurostat Review on National Accounts Social and Financial Accounting Matrices for Brazil (2010-2017) and Macroeconomic Indicators. Erika Burkowski (UFF), Fernando Salgueiro Perobelli (UFJF) The construction of extended supply and use and Inácio Fernandes de Araújo Júnior (USP) and input-output tables has been presented as a means of addressing some of the current challenges for the national accounts that are induced by economic globalisation. Such tables Description take into account within-industry firm heterogeneity that is not related to product The Social and Financial Accounting Matrices are characteristics, through a disaggregation of available for the years 2010 to 2017. It considers: industries by size, ownership, exporter status or other relevant criteria. Beyond their • 128 Goods and Services; contribution to improving national accounts • 68 Sectors; data, these extended tables also allow us to • 3 Factors; derive new results on the participation of • 4 Institutional Agents in the Current Account; categories of firms in domestic and global value • 4 Institutional Agents in the Capital Account; chains. In this article, we give an overview of • 8 Instruments in the Financial Account; where we stand today in terms of the • Rest of the World Account. construction of extended supply and use and input-output tables (SUT and IOT) for Belgium: See the database here. methodological choices, data used, tables that have already been constructed, and analytical results. This is designed as an input for organising future work on extended tables for Belgium, but it may also provide useful information for other countries that engage in the construction of extended SUT and IOT. 24 Newsletter Number 45, August 2020

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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. 6 Keynote Lectures - 1 Round Table on Covid During the next few months, and within the framework of the workshop, a series of COVID-19-related online presentations will take place with the 48 Thematic Sessions - Over 150 Presentations from input-output analysis as the methodological protagonist. 28 Countries across Europe and beyond 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 we Registration Preliminary Programme will publish the dates and registration forms (totally free). Overview From SHAIO we wish all the best for you and your families.

The SHAIO Council. IIOA Newsletter Editor: Vinicius A. Vale [email protected] Federal University of Parana, Brazil 25