Energy use by globalized economy: Total-consumption-based perspective via multi-region input-output accounting

• Published in: The Science of the total environment Vol. 662; pp. 65 - 76
• Main Authors: Wu, X.D., Guo, J.L., Meng, Jing, Chen, G.Q.
• Format: Journal Article
• Language: English
• Published: Netherlands Elsevier B.V 20-04-2019
• Subjects: Energy profile; Globalized world economy; Multi-region input-output accounting; Total-consumption-based perspective; Trade imbalance; Energy profile; Trade imbalance; Globalized world economy; Multi-region input-output accounting; Total-consumption-based perspective
• ISSN: 0048-9697; 1879-1026
• DOI: 10.1016/j.scitotenv.2019.01.108

Within a single integrated globalized economy featuring robust fluxes of interregional trades, the world economy is like a giant bathtub containing the world inventory of energy use. Based on different norms or ethic percepts, the energy use of the world economy is reallocated to nations and regions via global supply chain using normative accounting schemes. By combining typical statistics for world economy 2012, a new perspective is presented in this study to look into the energy use of regional economies from the side of genuine final consumers. Parallel to the final-demand-based accounting method, a total-consumption-based multi-region input-output accounting method is developed following the norm of consumption being the ultimate end and purpose of all producing activities. From a total-consumption-based perspective, the energy use of the United States economy is shown in magnitude 1.8 times that of mainland China, compared to a ratio of 88% from a territorial-based perspective. The consumer-product-related trade imbalances of major economies in terms of both currency and energy use are analyzed, with major interregional net trade flows illustrated. While the United States and mainland China are respectively revealed as the leading net exporter and net importer of currency, the energy trade deficit of the latter is in magnitude around four times the energy trade surplus of the former. The trade structures by geography and sector are respectively presented for the United States and mainland China as two distinct economies. It is found that around half of the United States' exports of energy use originate from transport and service industries, while nearly 90% of mainland China's exports of energy use come from heavy industry. The findings are supportive for nations to identify their roles in the global supply chain from the perspective of genuine final consumers and adjust the trade patterns for sustained energy use.
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•A global energy profile is constructed from the side of genuine final consumers.•A total-consumption-based multi-region input-output accounting scheme is developed.•Energy use of the United States is 1.8 times that of mainland China.•Mainland China accounts for 40% of global total exports of energy use.•Energy trade imbalance of Mainland China is four times that for the United States.