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    The Carbon Footprint of Nations
    A global multi-regional analysis



    Edgar G. Hertwich and Glen P. Peters

    Industrial Ecology Programme
    Norwegian University of Science and Technology
    Trondheim, Norway

    ISIE Conference
    Lisbon, 22 June 2009
                                          Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
2



    Overview
    1.   Objective, Motivation
    2.   Multiregional Input-Output Model and Data
    •    Carbon footprints of nations
    •    Cross-sectional analysis: Wealth and CO2
    •    Conclusions and outlook

    http://carbonfootprintofnations.com
    http://pubs.acs.org/doi/abs/10.1021/es803496a



                                   Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
3



    Objective
    • Better understand the composition of carbon
      footprints of different countries
      – What are the most important consumption
        categories?
      – How important is public consumption compared to
        private (household) consumption and investment?
    • Investigate global patterns of carbon footprint
      – cross-national analysis
      – underlying driving factors




                                     Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
4



    First global assessment
    • GTAP* database
       –   87 world regions
       –   57 sectors
       –   For the year 2001
       –   GHG emissions only

    • Various data and methodological issues

    *Global Trade Analysis Project




                                     Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
5



    Full MRIO Model (1)
    Mass balance as for total trade



    Step 1: Split exports between final demand and
      industry

    Step 2: Split exports to industry in direct
      proportions



           Peters, Ecol.Econ. 2007    Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
6



       Full MRIO Model (2)
       • Full MRIO mass balance




    Interindustry demand
                                                               Export to final
                                                               demand
             Domestic demand   Export to industry



                                           Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
7



    Full MRIO Model (3)                          Imports to final demand



 x1   A11 A12 A13           L A1m        x1   y11 + Σ j≠1 y1j 
                                           y +Σ y 
 x2   A21 A22 A23           L  A2m       x2   22        j≠ 2 2j 

 x3  =  A31 A32 A33         L A3m        x3  +  y33 + Σ j≠3 y3j 
                                                                 
M  M        M   M           O M         M  M                     
 x  A                       L Amm       x   y +Σ y 
 m   m1 Am2 Am3                          m   mm
                                                     
                                                                        
                                                                j≠ m mj 



     Import IO coefficients                    Domestic IO coefficients
         Aij = sij Aj import
               ˆ

                                          Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
8                                CO2 [Gt CO2]                                   Non-CO2-GHG [Gt CO2e]


     Investment                                               Investment

    Government                                               Government

    Households                                               Households


                  0          5         10        15     20                 0       2           4           6           8

                             GHG total [Gt CO2e]
                                                                                       Construction
                                                                                       Shelter
     Investment
                                                                                       Food
                                                                                       Clothing
    Government
                                                                                       Manufactured products
    Households                                                                         Mobility
                                                                                       Service
                                                                                       Trade
                  0      5        10        15     20   25




                      http://pubs.acs.org/doi/full/10.1021/es803496a   Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
9



      Sub-saharan Africa


Middle East/North Africa

                                                                             Construction
         South America                                                       Shelter
                                                                             Food
                                                                             Clothing
             South Asia
                                                                             Manufactured products
                                                                             Mobility
                 Europe                                                      Service
                                                                             Trade
              East Asia


             OECD NW



                           0   0.2   0.4   0.6   0.8            1




                                                       Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
10
                              1E+2
                                         GHG
                                         NonCO2
                                         CO2
                                         Power (NonCO2)
     Footprint [t/capita/y]




                              1E+1       Power (CO2)
                                         Power (GHG)




                              1E+0




                              1E-1
                                  1E-1             1E+0            1E+1                          1E+2
                                               Consumption [1000 $/capita/y]
                                                                  Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
11                                      Construction                           Shelter                         Food
                            1                                  1                                  1
                           10                                 10                                 10
     ton CO2e per capita

                            0                                  0                                  0
                           10                                 10                                 10


                            -1                                 -1                                 -1
                           10                                 10                                 10


                            -2                                 -2                                 -2
                           10                                 10                                 10
                                  2                    4             2                    4            2                  4
                                10                   10            10                    10           10                 10

                                          Clothing                      Manufactured products                 Mobility
                            1                                  1                                  1
                           10                                 10                                 10
     ton CO2e per capita




                            0                                  0                                  0
                           10                                 10                                 10


                            -1                                 -1                                 -1
                           10                                 10                                 10


                            -2                                 -2                                 -2
                           10                                 10                                 10
                                  2                    4             2                    4            2                  4
                                10                   10            10                    10           10                 10

                                          Service                              Trade
                            1                                  1
                           10                                 10
     ton CO2e per capita




                                                                                                           OECD NW
                            0                                  0                                           East Asia
                           10                                 10
                                                                                                           Europe
                                                                                                           South Asia
                            -1                                 -1
                           10                                 10                                           South America
                                                                                                           Middle East/North Africa
                            -2                                 -2                                          Sub-saharan Africa
                           10                                 10
                                  2                    4             2                    4
                                10                10               10                 10
                                 Expenditure ($ per capita)         Expenditure ($ per capita)

                                                                                                               Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
12

                        Importance of categories as a
                        function of wealth
                        2
                       10



                        1
                                                                                                                    GHG footprint
                       10                                                                                             elasticity
                                                                                                Construction              0.74
                                                                                                  Shelter                 0.65
 ton CO2e per capita




                        0
                       10                                                                          Food                   0.29
                                                                                                 Clothing                 0.79
                                                                                                Manufactures              0.88
                                                                                                 Mobility                 0.83
                        -1
                       10                               Construction                              Service                 0.55
                                                        Shelter                                    Trade                  0.88
                                                        Food
                                                        Clothing
                        -2
                       10                               Manufactured products
                                                        Mobility
                                                        Service
                                                        Trade
                        -3
                       10
                             2     3                      4                      5
                            10   10                     10                      10
                                 Expenditure ($ per capita)

                                                                                Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
13



                       What really matters …
                       16

                       14

                       12      Construction
                               Shelter
 ton CO2e per capita




                       10      Food
                               Clothing
                        8      Manufactured products
                               Mobility
                               Service
                        6      Trade

                        4

                        2

                        0
                           2           3                  4             5
                        10          10                  10         10
                                   Expenditure ($ per capita)
                                                                Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
14



      Numerical regression results
                               GHG
                    Monetary footprint Global Footprint Footprint
                    elasticity elasticity Average 1$/d $100’000/y
     Construction       0.99     0.74   10 %      5%               9%
     Shelter            0.97     0.65   19 %     13 %             14 %
     Food               0.64     0.29   20 %     44 %               6%
     Clothing           0.91     0.79    3%       2%                3%
     Manufactures       1.09     0.88   10 %      5%              18 %
     Mobility           1.07     0.83   17 %     10 %             29 %
     Service            1.16     0.55   16 %     19 %             11 %
     Trade              1.14     0.88    6%       2%               9%
     Total [tCO2/person- year]            5.5      1.5                53
                                                   Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
15



       International Comparison
                                                                                      Change in
                               Income        Income Expenditure Expenditure
                                                                                     energy with
     Country       Year      elasticity of elasticity of elasticity of elasticity of
                                                                                      household
                                energy         CO2          energy         CO2
                                                                                         size
     Australia     1993-94      0.59         0.55          0.74              0.70              -0.16
     Australia     1998-99                                 0.78                                -0.02
     Brazil        1995                                    1.00                                -0.07
     Denmark       1995         0.51         0.51          0.90              0.90              -0.20
     Denmark       1995                                    0.86                                -0.22
     India         1993-94                                 0.86                                -0.01
     Japan         1999                                    0.64                                0.06
     Netherlands   1990         0.63                       0.83                                -0.33
     New Zealand   1980                                    0.40
     Norway        1973                                    0.72                                -0.27
     USA           1960-81                                 0.85
     USA           1972-73                                 0.78                                -0.33
                                                         Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
16

     Cross-country and within country
     variation

     • Same elasticity for energy/CO2 – remarkable
       invariance of wealth-energy connection across
       different circumstances and many orders of
       magnitude

     • Both approaches have the weakness of measuring
       consumption in monetary terms – different CO2
       intensity of different qualities of same product type
       not considered




                                          Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
17



     Further work
     • Role of technology versus changes in quality
       and structure with increased wealth
     • Density, climate and other explanatory
       variables
     • Specific comparisons – decoupling of
       “footprints” and wealth; other indicators of
       welfare
     • New database – EXIOPOL: more
       environmental detail



                                   Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
18


             Questions?



           edgar.hertwich@ntnu.no
        www.carbonfootprintofnations.com




               Edgar Hertwich
             Industrial Ecology Programme
     Norwegian University of Science and Technology
                  Trondheim, Norway


                                    Edgar.hertwich@ntnu.no, carbonfootprintofnations.com

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Carbon Footprint of Nations 090622

  • 1. 1 The Carbon Footprint of Nations A global multi-regional analysis Edgar G. Hertwich and Glen P. Peters Industrial Ecology Programme Norwegian University of Science and Technology Trondheim, Norway ISIE Conference Lisbon, 22 June 2009 Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
  • 2. 2 Overview 1. Objective, Motivation 2. Multiregional Input-Output Model and Data • Carbon footprints of nations • Cross-sectional analysis: Wealth and CO2 • Conclusions and outlook http://carbonfootprintofnations.com http://pubs.acs.org/doi/abs/10.1021/es803496a Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
  • 3. 3 Objective • Better understand the composition of carbon footprints of different countries – What are the most important consumption categories? – How important is public consumption compared to private (household) consumption and investment? • Investigate global patterns of carbon footprint – cross-national analysis – underlying driving factors Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
  • 4. 4 First global assessment • GTAP* database – 87 world regions – 57 sectors – For the year 2001 – GHG emissions only • Various data and methodological issues *Global Trade Analysis Project Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
  • 5. 5 Full MRIO Model (1) Mass balance as for total trade Step 1: Split exports between final demand and industry Step 2: Split exports to industry in direct proportions Peters, Ecol.Econ. 2007 Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
  • 6. 6 Full MRIO Model (2) • Full MRIO mass balance Interindustry demand Export to final demand Domestic demand Export to industry Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
  • 7. 7 Full MRIO Model (3) Imports to final demand  x1   A11 A12 A13 L A1m   x1   y11 + Σ j≠1 y1j         y +Σ y   x2   A21 A22 A23 L A2m   x2   22 j≠ 2 2j   x3  =  A31 A32 A33 L A3m   x3  +  y33 + Σ j≠3 y3j          M  M M M O M  M  M   x  A L Amm  x   y +Σ y   m   m1 Am2 Am3   m   mm   j≠ m mj  Import IO coefficients Domestic IO coefficients Aij = sij Aj import ˆ Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
  • 8. 8 CO2 [Gt CO2] Non-CO2-GHG [Gt CO2e] Investment Investment Government Government Households Households 0 5 10 15 20 0 2 4 6 8 GHG total [Gt CO2e] Construction Shelter Investment Food Clothing Government Manufactured products Households Mobility Service Trade 0 5 10 15 20 25 http://pubs.acs.org/doi/full/10.1021/es803496a Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
  • 9. 9 Sub-saharan Africa Middle East/North Africa Construction South America Shelter Food Clothing South Asia Manufactured products Mobility Europe Service Trade East Asia OECD NW 0 0.2 0.4 0.6 0.8 1 Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
  • 10. 10 1E+2 GHG NonCO2 CO2 Power (NonCO2) Footprint [t/capita/y] 1E+1 Power (CO2) Power (GHG) 1E+0 1E-1 1E-1 1E+0 1E+1 1E+2 Consumption [1000 $/capita/y] Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
  • 11. 11 Construction Shelter Food 1 1 1 10 10 10 ton CO2e per capita 0 0 0 10 10 10 -1 -1 -1 10 10 10 -2 -2 -2 10 10 10 2 4 2 4 2 4 10 10 10 10 10 10 Clothing Manufactured products Mobility 1 1 1 10 10 10 ton CO2e per capita 0 0 0 10 10 10 -1 -1 -1 10 10 10 -2 -2 -2 10 10 10 2 4 2 4 2 4 10 10 10 10 10 10 Service Trade 1 1 10 10 ton CO2e per capita OECD NW 0 0 East Asia 10 10 Europe South Asia -1 -1 10 10 South America Middle East/North Africa -2 -2 Sub-saharan Africa 10 10 2 4 2 4 10 10 10 10 Expenditure ($ per capita) Expenditure ($ per capita) Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
  • 12. 12 Importance of categories as a function of wealth 2 10 1 GHG footprint 10 elasticity Construction 0.74 Shelter 0.65 ton CO2e per capita 0 10 Food 0.29 Clothing 0.79 Manufactures 0.88 Mobility 0.83 -1 10 Construction Service 0.55 Shelter Trade 0.88 Food Clothing -2 10 Manufactured products Mobility Service Trade -3 10 2 3 4 5 10 10 10 10 Expenditure ($ per capita) Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
  • 13. 13 What really matters … 16 14 12 Construction Shelter ton CO2e per capita 10 Food Clothing 8 Manufactured products Mobility Service 6 Trade 4 2 0 2 3 4 5 10 10 10 10 Expenditure ($ per capita) Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
  • 14. 14 Numerical regression results GHG Monetary footprint Global Footprint Footprint elasticity elasticity Average 1$/d $100’000/y Construction 0.99 0.74 10 % 5% 9% Shelter 0.97 0.65 19 % 13 % 14 % Food 0.64 0.29 20 % 44 % 6% Clothing 0.91 0.79 3% 2% 3% Manufactures 1.09 0.88 10 % 5% 18 % Mobility 1.07 0.83 17 % 10 % 29 % Service 1.16 0.55 16 % 19 % 11 % Trade 1.14 0.88 6% 2% 9% Total [tCO2/person- year] 5.5 1.5 53 Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
  • 15. 15 International Comparison Change in Income Income Expenditure Expenditure energy with Country Year elasticity of elasticity of elasticity of elasticity of household energy CO2 energy CO2 size Australia 1993-94 0.59 0.55 0.74 0.70 -0.16 Australia 1998-99 0.78 -0.02 Brazil 1995 1.00 -0.07 Denmark 1995 0.51 0.51 0.90 0.90 -0.20 Denmark 1995 0.86 -0.22 India 1993-94 0.86 -0.01 Japan 1999 0.64 0.06 Netherlands 1990 0.63 0.83 -0.33 New Zealand 1980 0.40 Norway 1973 0.72 -0.27 USA 1960-81 0.85 USA 1972-73 0.78 -0.33 Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
  • 16. 16 Cross-country and within country variation • Same elasticity for energy/CO2 – remarkable invariance of wealth-energy connection across different circumstances and many orders of magnitude • Both approaches have the weakness of measuring consumption in monetary terms – different CO2 intensity of different qualities of same product type not considered Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
  • 17. 17 Further work • Role of technology versus changes in quality and structure with increased wealth • Density, climate and other explanatory variables • Specific comparisons – decoupling of “footprints” and wealth; other indicators of welfare • New database – EXIOPOL: more environmental detail Edgar.hertwich@ntnu.no, carbonfootprintofnations.com
  • 18. 18 Questions? edgar.hertwich@ntnu.no www.carbonfootprintofnations.com Edgar Hertwich Industrial Ecology Programme Norwegian University of Science and Technology Trondheim, Norway Edgar.hertwich@ntnu.no, carbonfootprintofnations.com