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Commit bf92871f authored by Ingram Jaccard's avatar Ingram Jaccard
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...@@ -148,7 +148,7 @@ In this paper, we assess under what conditions European energy inequality is com ...@@ -148,7 +148,7 @@ In this paper, we assess under what conditions European energy inequality is com
We first decomposed national household final demand expenditure in the EE-MRIO model EXIOBASE (version3, industry-by-industry) [@stadler_exiobase_2018], by income quintile, using European household budget survey (HBS) macro-data from EUROSTAT [@eurostat_database_nodate]. The EUROSTAT HBS publishes national data on mean consumption expenditure by income quintile (in purchasing power standard (PPS) euro) and the structure of consumption expenditure by income quintile and COICOP consumption category. We first decomposed national household final demand expenditure in the EE-MRIO model EXIOBASE (version3, industry-by-industry) [@stadler_exiobase_2018], by income quintile, using European household budget survey (HBS) macro-data from EUROSTAT [@eurostat_database_nodate]. The EUROSTAT HBS publishes national data on mean consumption expenditure by income quintile (in purchasing power standard (PPS) euro) and the structure of consumption expenditure by income quintile and COICOP consumption category.
We mapped the EXIOBASE sectors to one of the COICOP consumption categories (our mapping can be found in the SI), and used the relative shares of each COICOP consumption category between the income quintiles in the HBS to decompose the EXIOBASE national household final demand expenditure per sector by income quintile as well. We then multiplied this income-stratified EXIOBASE national household final demand expenditure by 'total' energy use and carbon intensities per EXIOBASE sector, calculated in EXIOBASE using standard input-output calculations, to estimate national household energy and carbon footprints stratified by income quintile. We mapped the EXIOBASE sectors to one of the COICOP consumption categories (our mapping can be found in the SI), and used the relative shares of each COICOP consumption category between the income quintiles in the HBS to decompose the EXIOBASE national household final demand expenditure per sector by income quintile as well. We then multiplied this income-stratified EXIOBASE national household final demand expenditure by 'total' energy use and carbon intensities per EXIOBASE sector, calculated in EXIOBASE using standard input-output calculations, to estimate national household energy and carbon footprints stratified by income quintile. We used EXIOBASE as the EE-MRIO for this study because of its European focus, with nearly all countries in the EUROSTAT HBS also found as stand-alone countries in EXIOBASE (see SI - table 5), its detailed satellite extension data, and its year coverage (specifically version3, industry-by-industry).
## Environmental footprints ## Environmental footprints
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...@@ -123,11 +123,9 @@ $$ ...@@ -123,11 +123,9 @@ $$
### Satellite extensions ### Satellite extensions
The satellite extensions we use are emissions of CO2-equivalence (in kilograms) and gross total energy use (in terajoules). We create the CO2-equivalence extension by summing together CO2, CH4, N2O, SF6, HFCs, and PFCs, from combustion, noncombustion, agriculture and waste. We use Global Warming Potential (GWP) values for a 100-year time horizon taken from the IPCC Fifth Assessment Report (@myhre_g._anthropogenic_2013 (p.73-79)]: 28 for CH4, 265 for N2O and 23500 for SF6 (HFCs and PFCs are in CO2-equivalence already in the EXIOBASE satellite extensions). The satellite extensions we use are emissions of CO2-equivalence (in kilograms) and gross total energy use (in terajoules). We create the CO2-equivalence extension by summing together CO2, CH4, N2O, SF6, HFCs, and PFCs, from combustion, noncombustion, agriculture and waste. We use Global Warming Potential (GWP) values for a 100-year time horizon taken from the IPCC Fifth Assessment Report [@myhre_g._anthropogenic_2013 (p.73-79)]: 28 for CH4, 265 for N2O and 23500 for SF6 (HFCs and PFCs are in CO2-equivalence already in the EXIOBASE satellite extensions).
Gross total energy use... ('Energy Carrier Use: Total' (TJ)) The 'gross total energy use' extension in EXIOBASE converts final energy consumption in the IEA energy balance data from the territorial to residence principle following SEEA energy accounting. In their Supporting Information 2, Stadler et al. (2018) @stadler_exiobase_2018 describe the compilation of the energy extensions in EXIOBASE version3. Energy supply and use tables from the International Energy Agency (IEA) are converted from the territory to the residence principle, before being allocated to the EXIOBASE industries and final use categories. This affects four transportation types: international air transport (deliveries from international aviation bunkers), international maritime transport (deliveries from international marine bunkers), fishing, and international road transport. The conversion to the residence principle means that the EXIOBASE energy extensions refer to the functional border of a country's economy. In this case, the system border is defined by the 'residence' of the agent. This means that energy supply and use from international transport by ships, airplanes, fishing vessels, cars and trucks are allocated to the resident units of a country, independent from where these activities take place. In EXIOBASE version3, because emissions from these transport activities are estimated from the energy extensions via emission factors, the emissions extensions follow the residence principle as well.
In their Supporting Information 2, Stadler et al. (2018) @stadler_exiobase_2018 describe the compilation of the energy extensions in EXIOBASE version3. Energy supply and use tables from the International Energy Agency (IEA) are converted from the territory to the residence principle, before being allocated to the EXIOBASE industries and final use categories. This affects four transportation types: international air transport (deliveries from international aviation bunkers), international maritime transport (deliveries from international marine bunkers), fishing, and international road transport. The conversion to the residence principle means that the EXIOBASE energy extensions refer to the functional border of a country's economy. In this case, the system border is defined by the 'residence' of the agent. This means that energy supply and use from international transport by ships, airplanes, fishing vessels, cars and trucks are allocated to the resident units of a country, independent from where these activities take place. In EXIOBASE version3, because emissions from these transport activities are estimated from the energy extensions via emission factors, the emissions extensions follow the residence principle as well.
### Satellite extensions direct from final demand ### Satellite extensions direct from final demand
...@@ -324,7 +322,7 @@ flextable(labels) %>% ...@@ -324,7 +322,7 @@ flextable(labels) %>%
## Country and year coverage ## Country and year coverage
The EXIOBASE version3 industry-by-industry is available for the years 1995 to 2016, albeit with the caveat that the original data series ends in 2011, the 2012-2016 estimates are based on trade and macro-economic data, and care must be taken, especially analysing trends over time. The EUROSTAT HBS is available for the years: 1988, 1994, 1999, 2005, 2010 and 2015, although not all countries are available for all years. Table S5 shows the country and year coverage between EXIOBASE and the EUROSTAT HBS. Rows with black text show countries that are represented in EXIOBASE, and an 'x' for those years where EUROSTAT HBS data also exists for that country. Rows with red text show countries where EUROSTAT HBS data exists, but who are not represented individually in EXIOBASE (they are in 'rest-of-world' categories). The EXIOBASE version3 industry-by-industry is available for the years 1995 to 2016, albeit with the caveat that the original data series ends in 2011, the 2012-2016 estimates are based on trade and macro-economic data, and care must be taken, especially analysing trends over time. The EUROSTAT HBS is available for the years: 1988, 1994, 1999, 2005, 2010 and 2015, although not all countries are available for all years, and the years 1988, 1994, and 1999, in particular, have many missing countries. Table S5 shows the country and year coverage between EXIOBASE and the EUROSTAT HBS for the years 2005, 2010 and 2015. Rows with black text show countries that are represented in EXIOBASE, and an 'x' for those years where EUROSTAT HBS data also exists for that country. Rows with red text show countries where EUROSTAT HBS data exists, but who are not represented individually in EXIOBASE (they are in 'rest-of-world' categories in EXIOBASE).
```{r tableS5} ```{r tableS5}
...@@ -493,11 +491,9 @@ flextable(country_year_coverage) %>% ...@@ -493,11 +491,9 @@ flextable(country_year_coverage) %>%
## Limitations ## Limitations
Where do I say why we chose EXIOBASE? (also quick mention in main paper methods)
While the EUROSTAT HBS is compiled for cross-country comparison purposes and aims for harmonization, there remains imperfect harmonization in the frequency of surveys, timing, content and structure between countries and years @eurostat_eu_2020. Some types of households may also be excluded from the samples, including super-rich households, for example Germany, which excludes households with over €18,000 monthly net income @eurostat_eu_2020. Sensitive goods and services, such as alcohol, may be under-reported in household budget surveys, while expenditure on infrequent purchases such as a vehicle may create artificially large expenditure differences between households depending on the timing of the survey @eurostat_eu_2020. The EUROSTAT HBS macro-data also does not report direct foreign purchases, and we assumed that the expenditure shares between income quintiles of direct final demand for foreign goods and services was the same as direct final demand for domestic goods and services. While the EUROSTAT HBS is compiled for cross-country comparison purposes and aims for harmonization, there remains imperfect harmonization in the frequency of surveys, timing, content and structure between countries and years @eurostat_eu_2020. Some types of households may also be excluded from the samples, including super-rich households, for example Germany, which excludes households with over €18,000 monthly net income @eurostat_eu_2020. Sensitive goods and services, such as alcohol, may be under-reported in household budget surveys, while expenditure on infrequent purchases such as a vehicle may create artificially large expenditure differences between households depending on the timing of the survey @eurostat_eu_2020. The EUROSTAT HBS macro-data also does not report direct foreign purchases, and we assumed that the expenditure shares between income quintiles of direct final demand for foreign goods and services was the same as direct final demand for domestic goods and services.
There are also well known limitations when using and selecting an EE-MRIO [@moran_convergence_2014]. The production sectors in EXIOBASE are harmonized across countries and years, but needing to map the EUROSTAT HBS to EXIOBASE meant that the most recent year of 2015 could only use the industry-by-industry version of EXIOBASE version3. This version assumes fixed product sales. Furthermore, because EXIOBASE version3 is extrapolated beyond 2011, caution should be used when comparing results over time. This, and the fact that harmonization guidelines in the EUROSTAT HBS have changed over time, were the justification for presenting only the 2015 results in the main paper, and presenting 2005 and 2010 results only here in the SI and data file. We also show 2010 results using the product-by-product version of EXIOBASE version3 in the final section of this SI document. We used EXIOBASE as the EE-MRIO for this study because of its European focus, with nearly all countries in the EUROSTAT HBS also found as stand-alone countries in EXIOBASE, its detailed satellite extension data, and its year coverage (specifically version3, industry-by-industry), but there are well known limitations when using and selecting an EE-MRIO [@moran_convergence_2014]. The production sectors in EXIOBASE are harmonized across countries and years, but needing to map the EUROSTAT HBS to EXIOBASE meant that the most recent year of 2015 could only use the industry-by-industry version of EXIOBASE version3. This version assumes fixed product sales. Furthermore, because EXIOBASE version3 is extrapolated beyond 2011, caution should be used when comparing results over time. This, and the fact that harmonization guidelines in the EUROSTAT HBS have changed over time, were the justification for presenting only the 2015 results in the main paper, and presenting 2005 and 2010 results only here in the SI and data file. We also show 2010 results using the product-by-product version of EXIOBASE version3 in the final section of this SI document.
Mapping the EUROSTAT HBS to EXIOBASE means mapping the COICOP consumption categories in the HBS to industry production sectors in EXIOBASE, which is not one-to-one. Both the EUROSTAT HBS and EXIOBASE are limited in their consumption category/production sector level of detail. The share of each consumption category/production sector in the total amount of expenditure is also not identical between the HBS and EXIOBASE. As discussed in the 'methods for main paper results' section of this SI document, there are alternative methods for decomposing the EXIOBASE household final demand expenditure: one that keeps the EXIOBASE production sector shares of total expenditure intact, and one that keeps the HBS consumption category shares of total expenditure intact. Our results in the main paper use the first method, keeping the EXIOBASE sectoral shares of total expenditure intact, which means that the total footprint is identical to when it is calculated in EXIOBASE without any decomposition by income quantile. The alternative method, on the other hand, results in a different total footprint because a different amount of final demand expenditure in each sector is multiplied by the same original 'total' intensities, but stays faithful to the original HBS consumption category shares of total HBS expenditure. We show the alternative method and some results in the last sections of this SI document. Mapping the EUROSTAT HBS to EXIOBASE means mapping the COICOP consumption categories in the HBS to industry production sectors in EXIOBASE, which is not one-to-one. Both the EUROSTAT HBS and EXIOBASE are limited in their consumption category/production sector level of detail. The share of each consumption category/production sector in the total amount of expenditure is also not identical between the HBS and EXIOBASE. As discussed in the 'methods for main paper results' section of this SI document, there are alternative methods for decomposing the EXIOBASE household final demand expenditure: one that keeps the EXIOBASE production sector shares of total expenditure intact, and one that keeps the HBS consumption category shares of total expenditure intact. Our results in the main paper use the first method, keeping the EXIOBASE sectoral shares of total expenditure intact, which means that the total footprint is identical to when it is calculated in EXIOBASE without any decomposition by income quantile. The alternative method, on the other hand, results in a different total footprint because a different amount of final demand expenditure in each sector is multiplied by the same original 'total' intensities, but stays faithful to the original HBS consumption category shares of total HBS expenditure. We show the alternative method and some results in the last sections of this SI document.
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