Estimating Raw Material Equivalents with Multi-regional Input-Output Models: the Impact of Sectoral Disaggregation

ifeu paper 01/2018

Autor*innen: Karl Schoer, Monika Dittrich, Birte Ewers

An important issue at the UN, Eurostat and OECD expert workshop on demand-based measures of material flows and productivity in Paris, 18-19 September 2017, was the question of how the already existing OECD ICIO database for an MRIO model could be improved for the purpose of RME estimates by introducing a more suitable of level sectoral disaggregation. Taking that discussion as a starting point, this paper analyses the questions (1) what is the required level of sectoral disaggregation of an MRIO model for ensuring accurate re-sults in raw material equivalents? (2) What method could by applied for estimating a de-tailed sectoral disaggregation of country IOTs? (3) Which principal approach and what level of regional resolution could be envisaged for a high-resolution MRIO model?The reviewed disaggregation levels range between 64 and 182 product groups for pure monetary models. Hybrid models (mixed monetary and physical sales structures) are test-ed at the resolution level 155 and 182 sectors. Further, a so-called use extension was examined. Results show that if the analytical purpose calls for accurate results at the more detailed breakdown by 51 individual raw material categories, the required level of disaggregation of ICIO database has to be increased considerably. For metal ores, a purely monetary model by 155 sectors is sufficient. For other raw material categories, a hybrid model in a break-down by 155 or 182 product groups is needed. For future work, it was proposed to develop a high-resolution MRIO model by combining the OECD database with the EU RME model. A number of options for a regional resolution of that model were considered. A pragmatic approach for developing a regionally disaggregated model could be to follow a step-wise approach which may start with a low regional resolution.

Jahr

2018

Format

pdf

Publikationstyp

ifeu paper

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