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6C - LCA and Economics: Input/Output Analysis (TUP/226) Composition of total environmental multiplier of industry. Paloviita, Ari1, 1 University of Jyväskylä, School of Business and Economics, Jyväskylä, Finland, Finland ABSTRACT- Environmental input-output analysis has been introduced as a complementary tool for life cycle inventory. Total environmental multiplier derived from environmental input-output analysis includes upstream environmental burdens associated with the whole supply chain of a product or an industry. Total environmental multiplier can be further divided into direct and indirect multipliers. In this paper, the composition of total environmental multiplier is elaborated by using industries of the Finnish forest sector as a case study. Total environmental multiplier is here divided into five components: direct (1), direct domestic suppliers (2), domestic supply chain (3), imports (4) and capital goods (5). Environmental burdens considered are Global Warming Potential, SO2 and NOx. Supply and use tables, imports table, capital table and environmental burden table are used in environmental input-output analysis. The results explicitly show percentual contribution of each multiplier component to total environmental multiplier. In other words, it is shown how much total environmental multiplier of each industry is depended on own production and on the production of direct suppliers, other members of domestic supply chain, imported products and capital goods. Thus, the results of environmental input-output analysis may be useful for industries in evaluating relative importance of different life cycle stages and in drawing system boundaries. Key words: total multiplier, environmental input-output analysis, Finnish forest sector |
