The macroeconomic impacts of environmental tax reform: a comparison of model results

This chapter analyses a standard input-output (IO) model, which can be used to trace the path of intermediate inputs for any final product. It can, thus, be used to estimate the energy consumption and natural resources that have been used in making that product. The national statistics offices of countries in the Asia-Pacific region have compiled Asian international input-output under a project headed by the Institute of Developing Economies (IDE) of Japan. The chapter estimates the levels of 'embodied energy use' and 'embodied CO₂ emissions' in the Asia-Pacific region, based on input-output analysis using an Asian international input-output table. The top three countries in terms of CO2 emissions were the US, China, and Japan in both 1985 and 2005, the increase in CO₂ emissions in China was very large in the period 1985-2005; China increased its CO2 emissions 3.3 times compared to 1.3 times in Japan and 1.2 times in the US.