Ecological Economics Lecture 13 Allocating Carbon Responsibility 7th July 2010

1. Ecological EconomicsLecture 13Allocating Carbon Responsibility7th July 2010 Tiago DomingosAssistant ProfessorEnvironment and Energy SectionDepartment of Mechanical Engineering Collaboration: Alexandra Marques, João Rodrigues alexandra.marques@ist.utl.pt; joao.rodrigues@ist.utl.pt

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

3. Multi regional input/output LAND UNSKILLED LABOR SKILLED LABOR CAPITAL NATURAL RESOURCES Calculation of countries’/world regions’ carbon responsibilities. With a full environmental multi-regional input/output (MRIO) model, based on the GTAP 6 database (2001). INVESTMENT GOVERNMENT HOUSEHOLDS REGION 1 IO TABLE EXPORTS 87 regions x 57 sectors (...) IMPORTS REGION 87 IO TABLE World Carbon Responsibility 14 September 2014

4. World regions DEVELOPED (inc. Japan, Hong Kong, Singapore) EASTERN EUROPE ASIA AFRICA FOSSIL FUEL EXPORTERS - Australia - Canada - Venezuela - Middle East - South Africa - Russian Federation - (…) LATIN AMERICA RESPONSIBILITY (MTonCO2) World Carbon Responsibility

5. Transfer of consumer responsibility in inter-regional trade (MtonCO2) 4,814 5,549 190 (1.65) FOSSIL FUEL EXPORTERS ASIA (exporters) 4,883 307 (1.91) 3,980 11,286 343 (0.68) 414 (0.70) DEVELOPED (importers) 1,072 (1.58) 1,034 (1.47) 12,857 CONSUMER RESPONSIBILITY DIRECT EMISSIONS Responsibility in imports Responsibility in exports _ _ = 14 September 2014 World Carbon Responsibility

6. Consumer responsibility trade balance (MtonCO2) 14 September 2014 World Carbon Responsibility

7. Our approach: Producer responsibilityRodrigues et. al. (2006)1 Payment for imports Payment for exports REGION PAYMENT TO PRIMARY INPUTS FINAL DEMAND DIRECT EMISSIONS Responsibility embedded in payment for exports Responsibility embedded in payment for imports REGION PRODUCER RESPONSIBILITY Responsibility in payment for imports Responsibility in payment for exports DIRECT EMISSIONS PRODUCER RESPONSIBILITY + = + 1Rodrigues, J, Domingos, T, Giljum, S, Schneider, F. Designing an Indicator of Environmental Responsibility. Ecological Economics 59, 2006: 256-266. World Carbon Responsibility 14 September 2014

8. Transfer of producer responsibility in inter-regional trade (MtonCO2) 4,814 5,549 378 (2.36) FOSSIL FUEL EXPORTERS ASIA (exporters) 5,251 4,913 128 (1.11) 11,286 675 (0.96) 283 (0.42) DEVELOPED (importers) 648 (1.29) 661(1.12) 11,763 Responsibility payment for imports Responsibility payment for exports _ _ PRODUCER RESPONSIBILITY DIRECT EMISSIONS = World Carbon Responsibility 14 September 2014

9. Producer responsibility trade balance (MtonCO2) 14 September 2014 World Carbon Responsibility

10. Summing up... _ Producer Responsibility Direct Emissions _ Consumer Responsibility Direct Emissions (MtonCO2) World Carbon Responsibility