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Macro Sustainability across Countries: Key Sector Environmentally Extended Input-Output Analysis

Author

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  • Stanislav Shmelev

    (Environment Europe Foundation Stichting, Fluwelen Burgwal 58, The Hague Humanity Hub, 2511CJ Hague, The Netherlands
    Environment Europe Limited, 38 Butler Close, Oxford OX2 6JG, UK)

  • Harrison Roger Brook

    (University of Edinburgh, Edinburgh EH8 9AB, UK)

Abstract
When formulating economic development strategies, the environment and society must be considered to preserve well-being. This paper proposes a comparative sustainability assessment method using environmentally extended input-output analysis and multi-criteria decision aid. Using symmetric input-output tables and sectoral CO 2 emissions and employment data for six countries, linkage coefficients are calculated for 163 sectors in each country. Multi-criteria decision aid tool, ELECTRE III, is used to derive outranking relationships among each country’s sectors using these coefficients as criteria, resulting in a hierarchy of sectors ordered by sustainability. Sectors that frequently appear at the top of the six hierarchies included education, health care, construction, and financial intermediation. China’s results differ significantly because of its concentration of economic activity on the primary/secondary sectors. The results can enable identification of key intervention pathways along which sustainable development could be stimulated. Country-specific recommendations and reflections on economic and sustainability policy initiatives are discussed.

Suggested Citation

  • Stanislav Shmelev & Harrison Roger Brook, 2021. "Macro Sustainability across Countries: Key Sector Environmentally Extended Input-Output Analysis," Sustainability, MDPI, vol. 13(21), pages 1-46, October.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:21:p:11657-:d:661885
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