2021/06/07 by Samuel P. Loomis, Loomis, Samuel P., Mark Cooper +4
Environmental Science · Economics, Econometrics and Finance · #Environmental Impact and Sustainability #Climate Change Policy and Economics #Energy, Environment, Economic Growth
paper · pdf · doi:10.48550/arxiv.2106.03948
Multiregional input-output (MRIO) tables, in conjunction with Leontief\nanalysis, are widely-used to assess the geographical distribution of carbon\nemissions and the economic activities that cause them. Majorization, a tool\noriginating in economics that has found utility in statistical mechanics, can\nprovide insight into how Leontief analysis links disparities in emissions with\nglobal income inequality. We examine Leontief analysis as a model, drawing out\nsimilarities with modern nonequilibrium statistical mechanics. Paralleling the\nphysical concept of thermo-majorization, we define the concept of\neco-majorization and show it is a sufficient condition to determine the\ndirectionality of embodied emission flows. Surprisingly, relatively small trade\ndeficits and a geographically heterogeneous emissions-per-dollar ratio greatly\nincreases the appearance of eco-majorization, regardless of any further content\nin the MRIO tables used. Our results are bolstered by a statistical analysis of\nnull models of MRIO tables, based on data provided by the Global Trade\nAggregation Project9\n