Estimating CO2 Emissions Embodied in Final Demand and Trade Using the OECD ICIO 2015

Reliable carbon emissions statistics are essential for formulating responses to climate change including global negotiations such as those concluded in Kyoto in 1997 or recently in Paris at COP21. Typically, emissions statistics are compiled according to production-based or territorial emission accounting methods: measuring emissions occurring within sovereign borders. However, these estimates do not account for global production chains i.e. emissions from many countries may be implicated in the production of final goods and services. Using the 2015 edition of the OECD Inter-Country Input-Output (ICIO) tables and detailed IEA CO2 emissions from fuel combustion data, estimates of emissions embodied in final demand and in international trade were generated to contribute to a better understanding of how CO2 emissions around the world are driven by global consumption patterns. After explaining the methodology in detail, some general results are described and examples given of how to use and interpret the derived indicators.