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This conference presentation discusses the importance of integrating consumption-based measures, particularly carbon footprints, as essential complements to traditional production-based metrics. Focusing solely on domestic production can overlook significant environmental impacts, particularly through global production chains. The insights highlight how importing emissions from countries like China show substantial environmental footprints linked to consumption patterns. Emphasis is placed on the need for comprehensive strategies that acknowledge international trade dynamics and their implications for national sustainability policies.
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e-Frame “European Framework for Measuring Progress” (FP7 project) Conference on Measuring Well-Being and Fostering the Progress of Societies Paris, June 2012 Contact: nadim.ahmad@oecd.org
Further reflections on footprints • Case for accounting for consumption based measures (footprints) as complements to traditional production based measures is clear. • To focus exclusively on policies that look at domesticproduction risks ‘environmental leakages’ . Global production chains require looking at the whole picture – international production and domestic consumption.
Per capita Changes in Domestic Consumption of CO2 emissions broken down by emission source between 1995 and 2005
Further reflections on footprints • Case for accounting for consumption based measures (footprints) as complements to traditional production based measures is clear. • To focus exclusively on policies that look at domesticproduction risks ‘environmental leakages’ . Global production chains require looking at the whole picture – international production and domestic consumption. • IO approach is necessarily aggregated, so, necessitates care in interpretation and policy development. But does identify those industries/countries where policies (pricing mechanisms, technology transfers etc) could reduce national footprints.
Imported Emissions from China: % of total footprint Between 2005-2008 China’s emissions increased by 1500Mt CO2 and current account balance up from $134 bn to $312 bn Imported emissions up 200-300Mt of CO2 Net exports close to 600Mt of C02 in 2005 = total consumption of UK US demand induced emissions in Chinese electricity generation equivalent to total Greek emissions
Emissions embodied in HHFC: Mt per capita, 2005 With US rates, global emissions would more than double If Chinese and Indian households induced French levels of CO2, global emissions would be close to 50% higher
But focus on sustainability, through price mechanisms needs to recognise distributional impacts
Emissions and Consumption in France: 2005 X 3.4 X 2.7 CO2 emissions consumption Source: INSEE
Further reflections on TiVA • Joint OECD-WTO initiative • Mainstreaming • Institutionalised production of a global input-output table • And Motivating improvements at the national level • Linking trade and business registers to business statistics (and eventually input-output tables): OECD Workshop 25-26 October 2012, to identify export/import firm economic characteristics (including ownership) • Improved information on imports (services, and type) and consumers • Tracing income flows (and the role of capital) • Looking at jobs, tasks and skills
Foreign content share of China's exports by broad industry category – who benefits from trade?
What does globalisation mean for statistics • Increasing recognition that national statistical information systems need to better reflect global phenomena. • Requires a greater emphasis on exporting/importing firms and owners. • And an updated perspective on IO and SU tables. • But also requires stronger consistencies between labour statistics (jobs, skills etc) and national accounts. • And more detail. Policies impacts on the household and not the average.
Further information • www.oecd.org/trade/valueadded • www.oecd.org/sti/inputoutput/co2
