What Makes the Difference in Raw Material Equivalents Calculation Through Environmentally Extended Input-Output Analysis?

Abstract

This article describes an approach to improve the Czech model for raw material equivalents (RME) calculation to meet the standards of the Eurostat RME model. It also critically discusses the approach and suggests that some model features need revision. The improvements include further disaggregation of input-output tables; improvement of life cycle inventory data; hybridization of selected product groups; revaluation of imports at domestic prices; and adding additional information on recycling ratios for metal imports and the energy mix of electricity imports. It is shown that those improvements have a significant impact on RME of imports and exports (a decrease by 48% and 38%, respectively). The article further compares results for RME of imports and exports from the improved Czech RME model and the Eurostat RME country tool. These results differ by 24% and 16%, respectively, on an aggregated level, but the difference is much larger for particular material categories. Further improvements of the Eurostat country tool, such as a correction for unit prices of exports, are therefore recommended.