EIPOT

Environmental Impact of Trade

The EIPOT Project

Development of a methodology for the assessment of global environmental impacts of traded goods and services




EIPOT - Environmental Impacts of Trade - Photo of Containers International trade in goods and services is rising, driven by increased specialisation and globalisation of production and consumption.

What are the environmental impacts associated with growing trade between nations? Is it possible to quantify the extent of these impacts and to create "environmental trade balances"? And what are the most suited approaches to do this?


October 2009: Final report available to download from here (pdf).

The EIPOT project sets out at addressing these questions, in particular the last one. It aims at developing a commonly accepted methodology for the assessment of global environmental impacts of traded goods and services.

The EIPOT project, carried out by a consortium of four European research institutions on behalf of the SKEP (Scientific Knowledge for Environmental Protection) network, has addressed these questions, in particular the last one. The project has reviewed and evaluated environmental accounting methodologies and has specified a suitable integrated approach for quantifying trade-related impacts from a consumption perspective.

The final EIPOT project report recommends a standard methodology for the assessment of global environmental impacts of traded goods and services, details the data requirements for the methodology, provides recommendations for implementation of such a methodology and suggests further work needed to embed such a methodology.

The report looked at five policy dimensions – economic, environmental pressure/impact, geography, time, and life cycle stage – in order to understand the specific requirements for the methodology. The primary focus of the EIPOT project was on trade flows between different economies and production sectors within them, rather than on individual traded products.

As a methodological basis, the report suggests an environmentally extended multi-region input-output (EE-MRIO) framework closely connected to the System of Economic and Environmental Accounts (SEEA). Specific policy and research questions can then be addressed by building upon the EE-MRIO structure, using various forms of hybrid modelling

The EIPOT project report also elaborates on the role of regulatory authorities and advises on the practical implementation of future research. It will be of interest and use to the SKEP network, national ministries and agencies, national statistical offices (NSO), the European Commission (EC) and Eurostat as well as academia.

October 2009:
The final report is available to download from here (pdf).

© 2009 Stockholm Environment Institute. Design by Andreas Viklund | xNavigation software.