Raw Material Equivalents of Austrian trade flows Nina Eisenmenger, Anke Schaffartzik, Helga Weisz

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1 Raw Material Equivalents of Austrian trade flows Nina Eisenmenger, Anke Schaffartzik, Helga Weisz Institute of Social Ecology IFF-Vienna, Klagenfurt University

2 outline Feasibility Study funded by the Austrian Ministry of Agriculture, Forestry, Environment and Water Management Why Raw Material Equivalents? Method Results RME for the economic sectors RMC Raw Material Consumption, RMI Raw Mat. Inputs RTB Raw Material Trade Balance Conclusions Eisenmenger, Schaffartzik, Weisz ConAccount

3 why raw material equivalents? Economy-wide MFA is formally established One of the main indicators: Domestic Material Consumption DMC, which represents the amount of materials used within the socio-economic system of observation. Centre of interest in MFA now moves to the global resource requirements of domestic final consumption upstream material requirements of imports and exports have to be considered Raw Material Equivalents RME (Eurostat 2001) RME is using IO methods and thus provides two advantages: it follows the systemic view of socioeconomic systems and it uses statistical data sources. Eisenmenger, Schaffartzik, Weisz ConAccount

4 MFA data for Austria Monetary make/use tables (59 x 59 sectors) Allocation of DE to make-table exception: construction minerals Allocation of Imports (CN) to use-table Aggregation to: 5 material categories methods (biomass, metallic ores, non-metallic min., fossil fuels, other prod.) 59 sectors Derivation of the Technology Matrix according to the industry technology assumption Calculation of the IO table and the RME Eisenmenger, Schaffartzik, Weisz ConAccount

5 r = f <x> -1 (I-A) -1 The IO model I We used a standard generalized static open IO model of the form f is the given 1 x n vector of the direct material input into the economic sectors [tonnes] r is the computed 1 x n vector of direct resource intensities derived by post-multiplying f with <x> -1 (the n x n diagonal matrix with the inverse of total output x down the diagonal and zeros elsewhere). (I-A) -1 is the Leontief inverse. Eisenmenger, Schaffartzik, Weisz ConAccount

6 RME calculation The RME of exports and imports are computed by multiplying element by element the vectors for the direct and indirect material intensities (r 1 to r 5 ) in kg/1000 Euro and the vectors of export and imports respectively in 1000 Euro. This gives the RME per sector in kg. RMEexp = r <exp> RMEimp = r <imp> < > indicates that the column vectors of imports and exports have been diagonalised to allow for this multiplication. Eisenmenger, Schaffartzik, Weisz ConAccount

7 The data We used a 57 x 57 IO table from Statistics Austria, which is the highest resolution available for Austria. In our case the factor input vector (f) contains the material inputs into the sectors. This vector has been disaggregated by material categories and by origin of materials (DE and Imports) into a total of 96 material input vectors: 43 material categories in DE and 53 import categories (material categories follow the EUROSTAT 2007 Questionnaire). These vectors sum up to DMI. The calculation was done at the highest level of resolution but results are shown in an aggregated form: 5 types of raw materials (DE plus imports): biomass, metals, non-metallic minerals and fossil fuels, and one (small) group others, consisting of imported manufactured goods, to guarantee that the allocated materials add up to DMI. Sectors with RMEs < than 500 tonnes are aggregated into one sector in the following figures. Eisenmenger, Schaffartzik, Weisz ConAccount

8 open questions and constraints Application of domestic input-output structure to foreign countries In Austria the lack of domestic extraction and first processing of minerals including fossil fuels leads to an underestimation of RME im The application of monetary make/use tables instead of physical ones creates higher physical flows in sectors of later production stages and vice versa. Low disaggregation of primary sectors agriculture includes crop as well as livestock production metals includes very different types of metal ores its products In a matrix with as little as 59 sectors the assumption of homogeneous sectoral inputs and outputs is made at a point at which strong diversity may still exist. Eisenmenger, Schaffartzik, Weisz ConAccount

9 RME exports along sectors RMEs Exports Austria 2000 [1000 tonnes] Sum of sectors with RMEs < 500ktonnes secto ors chemical industry Chemische Erzeugnisse paper and pulp Papier, Pappe und Waren daraus metals and metal goods Metalle und Halbzeug daraus food a. fodder ind., incl. beverages Nahrungs- und Futtermittel sowie Getränke wood, cork, wicker a. prod. thereof Holz sowie Holz-, Kork- und Flechtwaren motor vehicles and parts thereof Kraftwagen und Kraftwagenteile glass, ceramics, treated stones & earth Glas, Keramik, bearbeitete Steine und Erden stones and earth Steine und Erden machinery Maschinen construction industry Bauarbeiten agricultural production, hunting Erzeugnisse d. Landwirtschaft und Jagd mach. for generation & distrib. of electr. Geräte der Elektrizitätserzeugung und -verteilung products of rubber & plastic Gummi- und Kunststoffwaren furniture, musical instr., sports equ., etc. Möbel, Schmuck, Musikinstrumente, Sportgeräte u.a. broadcasting equipment, electr. parts Nachrtechn., Rundfunk- u. FS-Geräte, elektr. Bauteile metal products Metallerzeugnisse Biomass Metalls Non Metallic Minerals Fossil Fuels Other tonnes Eisenmenger, Schaffartzik, Weisz ConAccount

10 RME imports along sectors RMEs Imports Austria 2000 [1000 tonnes] secto ors Sum of sectors with RMEs < 500 ktonnes oil, Erdöl natural und Erdgas, Erze ores (1) chemical Chemische Erzeugnisse industry agricultural Erzeugnisse production, d. Landwirtschaft hunting und Jagd food Nahrungs- a. fodder und ind., Futtermittel incl. sowie beverages Getränke motor vehicles Kraftwagen and und parts Kraftwagenteile thereof metals Metalle and und metal Halbzeug goods daraus stones Steine and und earth Erden petroleum Mineralölerzeugnisse products Papier, Pappe paper und Waren and daraus pulp glass, ceramics, Glas, Keramik, treated bearbeitete stones Steine & und earth Erden machinery Maschinen Forstwirtschaftliche forstry products Erzeugnisse wood, Holz cork, sowie wicker Holz-, Kork- a. prod. und Flechtwaren thereof furniture, Möbel, Schmuck, musical Musikinstrumente, instr., sports Sportgeräte equ., etc. u.a. products Gummi- of rubber und Kunststoffwaren & plastic mach. Geräte for generation der Elektrizitätserzeugung & distrib. und of -verteilung electr. Nachrtechn., broadcasting Rundfunk- equipment, u. FS-Geräte, electr. elektr. Bauteile parts metal Metallerzeugnisse products Biomass Metals Non Metallic Minerals Fossil Fuels Other tonnes Eisenmenger, Schaffartzik, Weisz ConAccount

11 RME intensities of sectors RME Coefficients, AT 2000 [kg/1000 Euro] extraction of stones, earth, other mining Gewinnung von Steinen und Erden, sonstiger Bergbau forestry Forst-wirtschaft coal and peat mining Kohlenbergbau, Torfgewinnung agriculture and hunting Landwirtschaft und Jagd Secto ors construction industry Bau Gewinnung von Erdöl und Erdgas, Erbringung damit verbun-dener Dienstleistungen mining of oil, gas, provision of derived services Herstellung von Glas und Glaswaren, Keramik, Verarbeitung von Steinen und glass, ceramics, Erden treated stones & earth Biomass Metal Ores Non-Metallic Minerals Fossil Energy Carriers Other Kokerei, Mineralöl-verarbeitung, Herstellung und Verarbeitung von Spalt- und Brutstoffen coking plants, oil proc., proc. of by-products wood, cork, wicker a. prod. thereof Herstellung von Holz sowie Holz-, Kork- und Flechtwaren (ohne Möbel) food a. fodder ind., incl. beverages Herstellung von Nahrungs- und Futtermitteln sowie Getränken paper and pulp Herstellung von Papier, Pappe und Waren daraus kg/1000 Euro Eisenmenger, Schaffartzik, Weisz ConAccount

12 Raw Material Consumption Raw Material Inputs [million tons] 160 DMC = DE + Im Ex RMC = DE + (Im + RME im) (Ex + RME ex) [million tons] DMI = DE + Im RMI = DE + Im + RME im 150 other products ot 60 fossil fuels 100 fo non metallic minerals metallic ores 50 no m m 0 DMC RMC biomass 0 DMI RMI bi Eisenmenger, Schaffartzik, Weisz ConAccount

13 Raw Material Trade Balance PTB = Im Ex RTB = (Im + RME im) (Ex + RME ex) RTB in comparison to PTB [million tons] 70 [million tons] 70 [million tons] other products 20 other products other products fossil fuels 15 fossil fuels fossil fuels non metallic 20 minerals metallic 10ores non metallic 10 minerals metallic 5 ores non metallic minerals metallic ores 0 exports exp + RMEex biomass 0 exports exp + RMEex biomass 0 PTB RTB biomass Eisenmenger, Schaffartzik, Weisz ConAccount

14 conclusions and further steps RME fulfil the request for an accurate representation of the global material requirements of domestic consumption for an industrialized country the RME account leads to an increase of RMC as compared to DMC A solution to some of the open questions has to be found, especially for reflecting foreign input-outputstructures, for example by regional input-output-models, or by including LCA coefficients for goods not produced domestically. RME accounts for export oriented countries Time series and productivity measures Eisenmenger, Schaffartzik, Weisz ConAccount

15 thank you for your attention Nina Eisenmenger, Anke Schaffartzik, Helga Weisz Institute of Social Ecology IFF-Vienna, Klagenfurt University, Austria Eisenmenger, Schaffartzik, Weisz ConAccount