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Resources are extracted from the earth in order to fuel human activities. This extraction process involves material and energy flows originating from the ecological system into the socio-economic system embedded in it. Excessive extraction of resources causes a strain on the natural environment that is responsible for provisioning of these resources along with other ecological activities.
In order to sustain human economic activities, which consist of production and consumption functions, the efficient use of resource inputs must be ensured. The material flow accounting framework can be used to chart these resource flows along the socio-economic processes. However, the products that are produced using these resource inputs may not be consumed within the same region. This requires an accounting approach that looks at the final demand side of resources as well as the supply side. The consumption based accounting looks after the former while production based accounting looks after the latter. The upstream resources along the production process can be considered to be embodied in the final product that is consumed. Some regions are net producers of embodied resources, whereas others are net consumers of embodied resources.
An Environmentally Extended Multi-Regional Input-Output (EE-MRIO) analysis in undertaken using EXIOBASE 3 for the year 2011. The production as well as consumption based indicators are derived for China, India and the United States of America. The results of the study indicate towards a significant difference in indicators with a shift in the scope of accounting between production based and consumption based. The indicators are broadly consistent with the concept of a higher production burden associated with ‘developing’ countries and a higher consumption burden associated with ‘developed’ countries.
Key words: Resource use, Material intensity, Energy intensity, Material and Energy Flow accounting, Multi-Regional Input-Output Analysis, Ecological burden, Embodied trade.
