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The main objective of this paper is to revisit the Euro method in a critical and constructive way.Wehave analysed some arguments against the Euro method published recently in the literature as well as some other relevant aspects of the SUT-Euro and SUT-RAS methods not covered before. Although not being the Euro method perfect, we believe that there is still space for the use of the Euro method in updating/regionalizing Supply and Use tables.

There are increasing numbers of published articles in the field of input–output analysis and modelling that use the GTAP input–output database; particularly, in relation to the estimation of carbon, energy and water footprints and the analysis of global value chains and international trade. The policy relevance of those topics is also increasing, thus calling for consistently linking these databases with official statistics. Although, so far, GTAP has been using their own classification and reconciliation methods, this paper develops a new conversion method for the EU that guarantees that the EU-GTAP database respects the new statistical standards and Eurostat official statistics. We recommend for future updates, a shift of the current GTAP classification of industries to the new official standard classifications to which countries are progressively moving to. Otherwise, the lack of matching official data would jeopardize the usefulness of such database. This method can be extended to other similar input–output databases with different classification schemes from the original input data sources.

Every change in the product and/or industry classifications and/or methodology of supply, use and input–output tables makes any medium- to long-term policy analysis impossible unless appropriate co...

Over the past two decades, EU employment supported by extra‐EU exports of goods and services has increased markedly, with a shift towards jobs supported by services exported as part of manufactured goods. The authors seek further insight into this trend through the full decomposition of trade flows using a multi‐regional input–output model and the World Input–Output Database for 40 countries and 35 industries over the period 1995–2011. Their findings call for reflection by policy‐makers regarding the four traditional modes of service supply under the General Agreement on Trade in Services with a view to adequately capturing this new reality in global trade.

We have introduced in this paper new variants of two methods for projecting Supply and Use Tables that are based on a distance minimisation approach (SUT-RAS) and the Leontief model (SUT-EURO). We ...

In applications, it is often necessary to link heavily aggregated macroeconomic datasets adhering to different statistical classifications. We propose a simple data reclassification procedure for t...

Input–Output modellers are often faced with the task of estimating missing Use tables at basic prices and also valuation matrices of the individual countries. This paper examines a selection of estimation methods applied to the European context where the analysts are not in possession of superior data. The estimation methods are restricted to the use of automated methods that would require more than just the row and column sums of the tables (as in projections) but less than a combination of various conflicting information (as in compilation). The results are assessed against the official Supply, Use and Input–Output tables of Belgium, Germany, Italy, Netherlands, Finland, Austria and Slovakia by using matrix difference metrics. The main conclusion is that using the structures of previous years usually performs better than any other approach.

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.

Testing the relationship between economic performance and energy consumption is of utmost importance in nearly all countries. Taking the European Union as scope, this paper analyses the impacts of energy efficiency legislation on a selection of household appliances. In particular, it analyses the employment and value added impacts of the stricter energy efficiency requirements for dishwashers, washing machines, and washer dryers. To do so, this paper combines a bottom-up stock model with a macro-econometric dynamic general equilibrium model (FIDELIO) to quantify the direct and indirect value added and employment impacts in the European Union. The analysis shows that stricter energy efficiency requirements on household dishwashers, washing machines, and washer dryers have a net negative macroeconomic impact on value added (roughly 0.01 % of the total European Union value added) and a slightly net positive impact on employment. In fact, the regulations cause a shift in the composition of the household consumption basket that seems to favor labor-intensive industries.

The Supply-Use Based Econometric (SUBE) approach was proposed to calculate stochastic input–output multipliers from rectangular supply-use tables under the product technology assumption. However, the resulting total use of direct requirements stimulated by final demand (be they carbon emissions, labor, etc.) may differ from the actual total use of direct requirements. To solve this problem, we propose in this paper a two-stage SUBE approach, which takes as prior the initially estimated SUBE multipliers and obtains a posterior set of two-stage SUBE multipliers by constrained least squares minimization. We illustrate the results with an empirical application for carbon emissions in the Portuguese economy in 2005.

This article quantifies for the first time the European employment effects of extra-EU exports and the correct number of jobs generated through the intra-EU trade (single market) associated with the production of such exports. The literature has neglected very often the latter effects mainly due to the lack of an appropriate methodology and data. The main results of the article show that, between 2000 and 2007, an increasing number of European jobs were dependent on extra-EU exports and on the strengthening of the trade linkages across the internal market. During the period considered, the EU employment supported by extra-EU exports grew from 22 to 25 million jobs, out of which 9 million jobs (in 2007) were due to spillover and feedback effects associated with the single market. Between 2000 and 2007 the EU also became a more vertically integrated economy, and reduced the labour intensity of the extra-EU exports.

This paper formalises the so-called Supply-Use Based Econometric (SUBE) approach that allows for the introduction of econometric analysis in the calculation of backward input–output multipliers of the Leontief-type quantity model, using rectangular supply and use tables. The SUBE approach does not require any kind of inverse matrix and incorporates the traditional approach (with square supply-use tables) as a particular case. The empirical analysis shows that the SUBE carbon dioxide multipliers for the EU27 are considerably lower than those obtained by the traditional Leontief inverse. In an application of the SUBE approach, the European economy appears to emit about 10% less carbon dioxide than in a situation in which it would not import any intermediate inputs from outside the EU27.

Food consumption causes, together with mobility, shelter and the use of electrical products, most life cycle impacts of consumption. Meat and dairy are among the highest contributors to environmental impacts from food consumption. A healthier diet might have less environmental impacts. Using the E3IOT environmentally extended input output database developed in an EU study on Environmental Impacts of Products (EIPRO), this paper estimates the difference in impacts between the European status quo and three simulated diet baskets, i.e. a pattern according to universal dietary recommendations, the same pattern with reduced meat consumption, and a 'Mediterranean' pattern with reduced meat consumption. Production technologies, protein and energy intake were kept constant. Though this implies just moderate dietary shifts, impact reductions of up to 8% were possible in reduced meat scenarios. The slightly changed food costs do not lead to significant first order rebound effects. Second order rebounds were estimated by applying the CAPRI partial equilibrium model. This analysis showed that European meat production sector will most likely respond by higher exports to compensate for losses on the domestic meat market. Higher impact reductions probably would need more drastic diet changes. © 2011 Elsevier B.V.

In this paper we argue that an accurate representation of household consumption behaviour is central to the analysis and comparison of policy interventions addressing sustainable consumption. Therefore, we propose to extend an input–output model with a specific household consumption model, at the core of which is a system of equations explaining the allocation of the households' overall expenditure across different purposes, such as buying food, the consumption of fuel for heating or electricity for cooling, education of children or travelling in terms of total expenditure and relative prices. This paper shows that the integration of a specific module for household consumption in a standard input–output model is an improvement for the analysis of the policies aimed at altering consumer behaviour.

Climate change research is currently a topic of great interest for economic researchers. In particular, environmental input–output analysis increasingly plays an important role in measuring the economic and environmental effects of sustainable development policies in Europe. Other approaches also exist, such as econometric modelling, in which impacts are quantified on statistical grounds and with certain desirable properties (efficient estimates, confidence intervals, hypothesis testing, etc.) that are not found in the input–output approach. Consequently, this paper merges the two approaches to address the calculation of unbiased and consistent carbon dioxide emission multipliers for Denmark and their respective confidence intervals. The use of the supply and use system instead of the symmetric input–output table also presents the opportunity to avoid the common problems associated with the construction of technical coefficients (technology assumptions, negatives, etc.). Moreover, a new policy-relevant application of these multipliers is introduced: the quantification of the performance of the carbon dioxide emission reductions carried out by industries via external trading.

Kop Jansen and ten Raa’s (1990) characterization of product-by-product input–output tables was adopted by the United Nations (1993). Recent OECD and several EU funded projects, however, used industry-by-industry tables, which raises comparable issues concerning their construction. We show how their two main construction models are instances of the transfer principle, with alternative assumptions on the variation of input–output coefficients across product markets. We augment the theory by formulating desirable properties for industry tables and investigate the so-called fixed product and fixed industry sales structure models, which are used by statistical institutes. The fixed industry sales structure model is shown to be superior from an axiomatic point of view.

The European Commission is currently establishing an Environmentally Extended Input–Output (EE-IO) Database for the EU27 developed by the Joint Research Centre at the Institute for Prospective Technological Studies (IPTS). This project attempts to generate an analytical dataset comprising all EU countries and yearly time series for the period 1995–2005. Since, for the time being, IO and environmental accounts data are only available with significant gaps part of the dataset will require estimates based on best available proxy data and reasonable assumptions. This paper is focused on the IO database shaped around Eurostat supply and use tables and symmetric IO tables consistent with the NACE classification. The paper describes the procedure by which the latest preliminary results have been obtained for an aggregate EU27 symmetric input–output table for the year 2000.

Technical coefficients are usually constructed from commodity or industry technology models. Although these models are considered as competing, there is an encompassing framework that admits a clear comparison.

Product input–output (IO) tables are mainly constructed on the basis of product and/or industry technology assumptions. The choice is not trivial and deserves empirical analysis using input and output data at the level of establishments. This paper offers input–output compilers econometric tests to facilitate the construction of tailored hybrid technology-based product IO tables. We provide weighted likelihood ratios of the product and industry technology assumptions. Although the proposed econometric tests are aimed to be used ex ante, we construct four variants of hybrid technology-based product IO tables using establishment data from Andalusia (Spain) and contrast them to the official product IO table and the pure product and industry technology-based tables. Our econometric tests are not valid for industry IO tables., JRC.J.5-Sustainable Production and Consumption