A NEW SUT CONSOLIDATION METHOD TESTED BY A DECOMPOSITION OF VALUE ADDED AND CO2 EMBODIED IN EU27 EXPORTS |
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Authors: | Maaike C Bouwmeester José M Rueda-Cantuche |
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Institution: | 1. Faculty of Economics and Business, University of Groningen, Groningen, The Netherlands;2. European Commission, Institute for Prospective Technological Studies, Seville, Spain |
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Abstract: | This paper develops a method to consolidate national supply–use tables (SUTs) into a single supra-regional SUT. The method deals with mirror trade statistics problems, such as the different valuation of imports and exports, and it corrects for double-counting re-exports. The method is tested by means of a decomposition of value added and CO2 emissions embodied in EU27 exports to third countries. When the national SUTs for the period 2000–2007 are used, neglecting intra-European Union spillover and feedback effects results in an underestimation of the embodied value added of 12–15%. Not consolidating the national tables properly leads to a further underestimation of 11–16%. With these underestimations removed, EU27 foreign exports still only explain around 11% of EU27 Gross Domestic Product, whereas they explain 17% of the EU27 CO2 emissions. Hence, the income benefits of these exports are, in relative terms, considerably smaller than their CO2 emission cost. |
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Keywords: | Supply–use tables Mirror trade problems Re-exports Value added in trade Embodied CO2 emissions |
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