Production and consumption based approach in analysing international spillovers of energy and its relation to development
Date Issued
2018
Author(s)
Mitevska M., Wood R., Lazarevska A. M., Markov Z.
Abstract
The world’s population growth causes increase in production
and consumption of goods and services, on one side, and greater
demand for land, energy and materials, on the other, leading to intensified
global economic activity and global exchange of goods and services. International
trade creates economic linkages among nations thus implying
energy spillovers between industrialized countries or the so – called
OECD and non-OECD countries. In this research paper, the production –
based and the consumption – based use of energy and its correlation with
economic growth is analyzed. The Multi – Regional – Input – Output
(MRIO) methodology is utilized to determine the amount of direct and indirect
use of energy related with products traded internationally. The analysis
encompasses 49 countries and regions, 200 industrial sectors and 7
final demand categories in the period from 1995 till 2012. The main focus
of the analysis sets on natural resources extraction, energy carriers use
and emissions relevant to energy use. Different perspectives causing
changes to both international trade patterns and global economic development
are discussed. The production and consumption accounting
showed a certain decline in the amounts of energy embodied in the foreign
exchange of products within the developed countries. In contrast, the figures
for the developing countries had an increasing tendency, but surprisingly
higher shares of renewable energy use within the national energy
mix.
and consumption of goods and services, on one side, and greater
demand for land, energy and materials, on the other, leading to intensified
global economic activity and global exchange of goods and services. International
trade creates economic linkages among nations thus implying
energy spillovers between industrialized countries or the so – called
OECD and non-OECD countries. In this research paper, the production –
based and the consumption – based use of energy and its correlation with
economic growth is analyzed. The Multi – Regional – Input – Output
(MRIO) methodology is utilized to determine the amount of direct and indirect
use of energy related with products traded internationally. The analysis
encompasses 49 countries and regions, 200 industrial sectors and 7
final demand categories in the period from 1995 till 2012. The main focus
of the analysis sets on natural resources extraction, energy carriers use
and emissions relevant to energy use. Different perspectives causing
changes to both international trade patterns and global economic development
are discussed. The production and consumption accounting
showed a certain decline in the amounts of energy embodied in the foreign
exchange of products within the developed countries. In contrast, the figures
for the developing countries had an increasing tendency, but surprisingly
higher shares of renewable energy use within the national energy
mix.
Subjects