Advanced Topics

Environmentally Extended Input-Output (EEIO)

Environmentally Extended Input-Output (EEIO) analysis is a powerful tool used to assess the interactions between economic activities and the environment. By expanding on traditional input-output analysis, EEIO integrates a range of complex environmental data into accessible economic models. Learn more with Minimum.

What is Environmentally Extended Input-Output?

Environmentally Extended Input-Output - often referred to as EEIO - refers to a method of analysis that extends traditional Input-Output (IO) models to incorporate environmental data. In the context of EEIO, an Input-Output model represents the interdependencies between different sectors of an economy.

EEIO models track the flow of goods, services and resources throughout the economy, accounting for their associated environmental impacts at each stage of production and consumption. By incorporating a detailed range of information on resource use, EEIO offers a comprehensive view of how economic activities affect overall environmental quality.

This approach enables policymakers, businesses, and researchers to evaluate the environmental footprint of specific industries and facilitate informed decision-making for sustainable resource management, pollution reduction, and the development of environmentally friendly policies and technologies.

What is an EEIO database?

Fundamentally an EEIO database is a comprehensive collection of data which combines input-output tables with environmental information. An EEIO database contains:

Detailed records of the economic transactions and interdependencies between sectors within an economy
Environmental data that quantify the resource use, emissions, and pollutants associated with these economic activities.

The goal of an EEIO database is to provide a systematic framework suitable for analyzing the environmental impacts of production, consumption, and trade by linking economic activities to their corresponding environmental footprints.

This encompasses a wide range of information, such as material and energy flows (such as with a material flow analysis), greenhouse gas emissions, water usage, waste generation, and other environmental indicators attributed to specific industries, products, or regions.

These databases are crucial for conducting life cycle assessments, sustainability evaluations, policy analyses and scenario modeling. This further aids businesses in understanding the connections between economic growth and environmental degradation so as to support informed decision-making towards more sustainable and environmentally responsible practices.

Factors

When developing an EEIO model, several factors and components are considered to assess the environmental impacts associated with economic activities.

For example, the information needed to track the flow of goods, services, and money between different sectors of the economy includes purchases, sales, and interdependencies among industries.

EEIO analysis also quantifies the use of natural resources such as water, energy, minerals, and the resulting emissions and pollutants across various industries to understand the environmental footprint associated with their extraction and consumption.
EEIO data can be used in conjunction with Life cycle analysis (LCA) integration to evaluate the entire life cycle of products or services, incorporating upstream and downstream environmental impacts.

These factors collectively help in understanding the complex interrelationships between economic activities and their associated environmental consequences. EEIO analysis uses this information to quantify the environmental footprint of industries, products, or regions, providing valuable insights for sustainable decision-making and policy formulation.

What is the main application of an analysis?

The primary application of an EEIO analysis lies in assessing the environmental impacts associated with economic activities. By integrating environmental data into input-output models, EEIO analysis allows for:

Reduction strategies	By aiding in designing and implementing strategies that promote sustainable resource management EEIO can aid in carbon reduction.
Identifying hotspots	Businesses use EEIO analysis to understand the environmental footprint of their supply chains and identify hotspots of environmental impact within production processes.
Understanding life cycle	Insightful analysis contributes to life cycle assessments by providing a comprehensive view of the environmental impacts associated with the entire life cycle of a product, from raw material extraction to disposal or recycling.
Sector specific insights	Researchers and organizations use EEIO analysis to identify industries or sectors that contribute significantly to environmental pressures, allowing for targeted interventions and improvements.

Overall, in depth analysis can evaluate the environmental consequences of trade patterns and consumption habits. This helps in understanding how global trade affects environmental sustainability and guides decisions related to imports, exports, and consumption patterns.

How Minimum can help

Minimum can help organizations to understand their existing carbon output, and create plans to mitigate climate related risks in the future. Our Emissions Data Platform seamlessly collects and processes emissions data from every corner of your organization and supply chain - no matter the format. Making it the ideal platform for emissions audits and all-round business intelligence.