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Environmental input-output modelling
In this assignment, you will independently execute an environmental input-output modelling exercise using datasets from the World Input-Output Database (http://www.wiod.org/home). You will need to find and extract two files from the WIOD website:
1) The National Input-Output table for the US (United States NIOT). You will extract this from the 2013 release of World Input-Output Tables covering 40 countries and 35 sectors.
2) The “Emissions to Air” file for the US (USA_AIR). You will extract this from Environmental Accounts
The Excel input-output file for the United States NIOT –“USA_NIOT_ROW_Sep12.xlsx”-
includes input-output tables from 1995 to 2011. You will be using the input output table for the year 2009.
The Excel “Emissions to Air” file for the US (USA_AIR) contains information on:
Emissions of CO2 (carbon dioxide) in Gg (kilotonnes)
o Emissions of CH4 (methane) in tonnes
o Emissions of N2O (nitrous oxide) in tonnes
o Emissions of NOx (nitrogen oxides) in tonnes
o Emissions of SOx (sulphur oxides) in tonnes
o Emissions of CO (carbon monoxide) in tonnes
o Emissions of NMVOC (non-methane volatile organic compounds) in tonnes
o Emissions of NH3 (ammonia) in tonnes
You will use only the first three (CO2, CH4 and N2O) for the year 2009.
You are asked to produce a brief document (less than 1,000 words excluding appendix) in which you analyse the effect of the following two situations on the US economy and the environment:
1) The effect of a 20% decrease in the final demand for the Agriculture, Hunting, Forestry and Fishing sector as a consequence of a reduction in Government support policies.
2) The effect of a drop of $14,000 million in the final demand of US air transport and a $14,000 million increase in the final demand for domestic inland transport, which includes transport via railways, other land transport and transport via pipelines (Note: you will not find these subsectors in the IO table, this is just information about what is included in the sector).
The document needs to briefly explain what would happen under these independent situations to the US economy (e.g. what sectors would be mostly affected, total effects) and its environment. You will need to briefly discuss whether it is (or it is not) possible to combine the effects on the economy and the environment into a common unit? If yes, what would that be for each of the two situations?
Note: to calculate the CO2 equivalent emissions (in tonnes) use you need to know that 1 kilotonne, which is the unit of the data for CO2 emissions, is 1,000 tonnes. You also need to multiply the CH4 emissions by 25 and the N2O emissions by 298 and add these to the CO2 emissions to obtain the global warming potential in CO2eq (tonnes).
This task needs to be presented in a brief report (less than 1,000 words) where you need to include an Appendix the R code(s) used (not included in the word limit). Assessment criteria will be based on structure and organisation of the report, content relevance, content clarity and correctness of the calculations, the clarity and correctness of the code attached to the appendix.
You may have one code for the whole assignment or two codes (one for each situation being analysed). Your do not need to include the Console output (i.e. the bottom left window from RStudio) nor result tables/matrices. However, you can include relevant tables of final results in the report.