Can I read Beyond Production and Consumption: Using Throughflows to Untangle the Virtual Trade of Externalities on EtoBox?

Beyond Production and Consumption: Using Throughflows to Untangle the Virtual Trade of Externalities by Timothé Beaufils; Etienne Berthet; Hauke Ward; Leonie Wenz is a Economics, Econometrics and Finance article available to read on EtoBox.

What is Beyond Production and Consumption: Using Throughflows to Untangle the Virtual Trade of Externalities about?

Understanding how countries contribute to the generation of externalities globally is important for designing sustainable policies aimed at reducing negative externalities such as carbon emissions. Commonly used approaches focus on either producers or consumers, thereby neglecting the role of intermediates. We here introduce the concept of throughflow to comprehensively quantify upstream externalities generated by the supply chains originating from, passing through or ending in a given country. We define the Throughflow Based Accounting (TBA) framework as the decomposition of the throughflow into local, imported, exported and traversing externalities. We illustrate the strength of the TBA by identifying the CO 2 emissions caused by supply chains involving the German economy. We show that Germany could use its position in global value chains to help reduce two times more CO 2 emissions than measured with usual production-or consumption-based accounting frameworks.

Who reads Beyond Production and Consumption: Using Throughflows to Untangle the Virtual Trade of Externalities?

Author

Timothé Beaufils; Etienne Berthet; Hauke Ward; Leonie Wenz

Publisher

Informa UK Limited

Published

2023

Language

EN

Field

Economics, Econometrics and Finance (Social Sciences)