A consumption-based, regional input-output analysis of greenhouse gas emissions and the carbon regional index

Abstract

This paper presents a consumption-based method accounting for greenhouse gas emissions at regional level based on a multi-region input-output model. The method is based on regional consumption and includes imports and exports of emissions, factual emission developments, green investments as well as low carbon development policies. We comparatively analyse three regional case studies in Denmark and show how regional initiatives implemented to reduce emissions are translated into easy to access input-output parameter changes and how the method transparently assesses the impact of various long-term regional climate plans on emissions. For the comparative analysis we further develop a carbon regional index (CRI), which delineates five key dimensions that define past, current and planned regional and embedded emissions. The method can form a basis for regional climate policies, promote the export of solutions from one region to another and enable policy-makers to observe good practices and test them at regional level before potential implementation on a larger scale.