Contact: nadim.ahmad@oecd

e-Frame “European Framework for Measuring Progress” (FP7 project)

Conference on Measuring Well-Being and Fostering the Progress

of Societies

Paris, June Paris, June 20122012

Contact: [email protected]

Further reflections on footprints

• Case for accounting for consumption based measures (footprints) as complements to traditional production based measures is clear.

• To focus exclusively on policies that look at domestic production risks ‘environmental leakages’ . Global production chains require looking at the whole picture – international production and domestic consumption.

Per capita Changes in Domestic Consumption of CO2 emissions broken down by emission source between 1995 and 2005

Further reflections on footprints

• Case for accounting for consumption based measures (footprints) as complements to traditional production based measures is clear.

• To focus exclusively on policies that look at domestic production risks ‘environmental leakages’ . Global production chains require looking at the whole picture – international production and domestic consumption.

• IO approach is necessarily aggregated, so, necessitates care in interpretation and policy development. But does identify those industries/countries where policies (pricing mechanisms, technology transfers etc) could reduce national footprints.

Imported Emissions from China: % of total footprint

Net exports close to 600Mt of C02 in

2005 = total consumption of UK

Between 2005-2008 China’s emissions increased by

1500Mt CO2 and current account balance up from

$134 bn to $312 bnImported emissions up 200-

300Mt of CO2

US demand induced emissions in Chinese electricity generation

equivalent to total Greek emissions

Emissions embodied in HHFC: Mt per capita, 2005

If Chinese and Indian

households induced French levels of CO2,

global emissions would be close to

50% higher

With US rates, global

emissions would more than double

But focus on sustainability, through price mechanisms needs to recognise distributional impacts

Emissions and Consumption in France: 2005

0

20

40

60

80

100

120

140

160

180

Q1 Q2 Q3 Q4 Q5

dépenses de consommation émissions de CO2Source: INSEE

X 3.4

X 2.7

consumption CO2 emissions

400

450

500

550

Q1 Q2 Q3 Q4 Q5

kgCO2/k€

Further reflections on TiVA

• Joint OECD-WTO initiative• Mainstreaming

– Institutionalised production of a global input-output table

• And Motivating improvements at the national level– Linking trade and business registers to business statistics

(and eventually input-output tables): OECD Workshop 25-26 October 2012, to identify export/import firm economic characteristics (including ownership)

– Improved information on imports (services, and type) and consumers

– Tracing income flows (and the role of capital)– Looking at jobs, tasks and skills

Foreign content share of China's exports by broad industry category – who benefits from trade?

11%

9%

4% 4%

Higher Tech US$ 57 bn

Lower TechUS$ 106 bn

1995

PrimaryUS$ 8 bn

ServicesUS$ 8 bn

ServicesUS$ 56 bn

PrimaryUS$ 16 bn

2005

25% 10%

9%

6%

Lower TechUS$ 387 bn

Higher Tech US$ 343 bn

Foreign

Domestic

Chinese High Tech Exports by Ownership – Follow the income?

What does globalisation mean for statistics

• Increasing recognition that national statistical information systems need to better reflect global phenomena.

• Requires a greater emphasis on exporting/importing firms and owners.

• And an updated perspective on IO and SU tables.• But also requires stronger consistencies between

labour statistics (jobs, skills etc) and national accounts.

• And more detail. Policies impacts on the household and not the average.

Further information

• www.oecd.org/trade/valueadded• www.oecd.org/sti/inputoutput/co2