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Input-Output Analysis - IOA


Input-output analysis can be used to calculate life cycle emissions as in LCA. Input-output analyses can be used as a standalone analysis or in combination with LCA in what is called hybrid life cycle assessment. We use input-output analysis in conjunction with the tool klimakost as well as standard analyses.


History

Direct and indirect emissions that result from a given demand of products or services can be calculated given the combination of economic transaction statistics between different economic sectors and emissions from these sectors.  The method was first developed by the Wassily Leontief , a Nobel laureate in economics, in the 1930s, and evolved to incorporate environmental and resource data in the 1970s.

Development

There has been continued development in the use of life cycle analyses, both standalone and in combination with process-based LCAs.

Calculations

Calculations are generally performed using advanced mathematical software, as the sheer quantity of data and complexity of the calculations are often beyond the capabilities of software such as Excel.

MiSA and input-output analysis

MiSA makes the most of the benefits offered by input-output analysis in hybrid LCA studies, LCA studies based exclusively on input-output data as well as the tool developed by MiSA, klimakost.  The matrix-based calculation framework for input-output suits LCA calculations perfectly and with the use of internally developed calculation programs we can analyze systems in great detail.  We constantly follow developments within the input-output field and strive to be the first to use new methods and new data sources when they become available.

Emissions from Norwegian consumption, 2005

MiSA has calculated the total Norwegian greenhouse gas and other emissions in 2005.  The geographical greenhouse gas emissions, that is all emissions from Norwegian economic activities, was approximately 65 million tonnes of CO2 equivalents in 2005.

Norwegian economic activity and therefore emissions in industry and commercial activity were driven by several areas:

  • households
  • public sector
  • net increase in capital
  • changes in stock
  • exports

In addition, one has direct emissions in households from activities such as oil heating and vehicle use.  This sector also induces activities in other countries due to import of goods and services.

The consumption based climate footprint was calculated for Norway for 2005.  This means that emissions were allocated to the final, consuming sector and not to the industry that produces the emissions. The case of imports are included as a fairly simplified model wherein it is assumed that the economy of the countries from which products are imported are similar to that of Norway.  The exception to this assumption of the electricity production sector, where we investigated different electricity mixes.  We will gradually incorporate better multi-region models in this analysis.





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