Air and climate: Carbon Dioxide Emissions embodied in International Trade (Edition 2015)

Indicators in the OECD database on Carbon dioxide (CO2) emissions embodied in international trade are derived by combining the 2015 version of OECD's Inter-Country Input-Output (ICIO) Database with International Energy Agency (IEA) statistics on CO2 emissions from fuel combustion.

Production-based CO2 emissions are estimated by allocating the IEA CO2 emissions to the 34 target industries in OECD ICIO and, to final demand for fuels, by both residents and non-residents. 

Consumption-based CO2 emissions are calculated by multiplying the intensities of the production-based emissions (c) with the global Leontief inverse (I-A)(-1) and global final demand matrix (Y) from OECD ICIO, taking the column sums of the resulting matrix and adding residential and private road emissions (FNLC), i.e. direct emissions from final demand: colsum [ diag(c) (I-A)(-1) Y ] + FNLC. 

The ICIO system includes discrepancies in the trade data (referred to as DISC). Emissions allocated to DISC are made explicit (e.g. in indicator FD_CO2). This ensures that global CO2 production equals global CO2 consumption. 

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