Course content

Environmental input-output analysis is becoming increasingly important. The objective of this course is to cover the main methodological challenges as well as give insight into two fields of applications.
The first part of the course shows how data from the national accounts provides a basis for economic as well as environmental assessment. Based on this, the input-output framework of Nobel laureate Wassily Leontief is developed. The second part of the course focuses on the application of input-output analysis to understand the material flows (MFA) within our society. Understanding this is becoming increasingly important to develop a sustainable society. The last part of the course addresses methods for analyzing environmental aspects of international trade and consumption. A method for analyzing the environmental impact of an arbitrary bag of goods as well as the full domestic consumption of a country is thought. This includes assessing environmental impacts associated with imported goods and services. The course also gives an introduction to how multiregional input-output can be used to derive environmental trade balances. Further, the course includes a session on the application of linear programming methods to input-output analysis. Finally an introduction to trade models based on comparative advantage is given.

Learning outcome

An understanding of production systems and international value chains is increasingly important for industry and policy makers alike. This course covers national economic and environmental accounts, economic input-output analysis, the economic modeling of production technologies and the development of scenarios using input-output models, as well as trade. The course includes an introduction to Matlab.

Learning methods and activities

The course consists of lectures and problem sets. The course reading is mandatory. The lectures are in English. For coninuation exam, the exam may be changed to an oral exam.

Compulsory assignments

• Exercises

Recommended previous knowledge

Linear algebra. A basic understanding of economics. An introductory course in environmental science or environmental economics.
One of the following courses or equivalent: TEP4223 Life-Cycle Assessment and Eco-Efficiency, TIØ4120 Operations Reasearch.
Contact main lecturer for inquiries regarding prerequisites.

Course materials

To be determined later.