Dynamic Technology-Adjusted Consumption-Based Accounting: National emission responsibilities based on current consumption patterns and production technologies

University essay from Lunds universitet/Ekonomisk-historiska institutionen

Abstract: Effective global emission mitigation policies require accurate guidance in terms of a fair and comparable emission accounting framework. This thesis presents an indicator that acknowledges countries’ technological differences as well as intertemporal capital dynamics. Accordingly, emissions associated with current consumption patterns are distinguished and less (more) polluting production compared to world averages are credited (punished). The novel contribution lies within the combination of two existing modifications to CBA for 40 countries using the World Input-Output Tables. The measure is created by deducting emissions embodied in exports based on world average sectoral emission intensities, and endogenizing capital dynamics as an approximation of inventory use following the augmentation method. Results impose considerable changes on emission responsibilities for a broad range of countries compared to conventional footprints, although not systematically in favor or disfavor of countries within similar development stages. Even if a measure capturing both of these features is interesting on its own, it should be further methodologically developed to differentiate between aims of capital investments.

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