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Application of life cycle based coefficients for imports in environmentally extended input output models



Input output analysis is often used to identify total material and energy flows required in a particular economy for the supply of products and services to the final demand. With growing international trade and moving industries to developing countries, a rising part of the material and energy flows emerges out of the studied economy.

With this fact arises a question of dealing with imports in input output models. In this paper we present an input output model with environmental extension deducted with a combination of domestic technology assumption for imports with equivalent domestic production and life cycle based coefficients for imports with no or different domestic production technology.

The need for life cycle based coefficients results from the lack of representative domestic production of several materials, which are widely used within the Czech economy: metal ores, crude oil and natural gas.