The expectations of and covariances between carbon footprints
João F. D. Rodrigues (Universiteit Leiden)
Rong Yuan (Universiteit Leiden, Chongqing University)
Hai-Xiang Lin (Universiteit Leiden, TU Delft - Mathematical Physics)
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Abstract
Carbon footprints and other environmentally extended input–output indicators are obtained as aggregations of emissions embodied in supply chains (EESCs), which express the emissions occurring in a specific production activity to satisfy a given volume of final demand. Here we derive theoretical approximations of the expectations of and covariances between EESCs, as a function of the expectations of and covariances between source data (technical coefficients, emission coefficients and final demand volumes) through a Taylor expansion. We report an empirical test of those approximations, using a sample of 5 global multi-regional input–output models in the year 2007, of which we extract 22 single-region input–output systems with 17 sectors. We find that approximations of multipliers perform better than those of EESC, and approximations of expectations perform better than those of covariances.
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