Carbon footprint analysis through constructing a multi-region input–output table: a case study of Japan

In line with recent trends toward decentralization, prefectural and municipal governments in Japan are becoming increasingly involved with managing global warming in their regions. As a result, there is a new need to estimate the environmental effects of regional economic activities, which can be used to establish effective energy policies at the regional level. However, the details of these effects remain unclear due to a lack of basic data. In this paper, we construct an original multi-region input–output (MRIO) table based on interregional shipments among Japan’s 47 prefectures; this is done using the prefectures’ single-region input–output (SRIO) tables and by applying a non-survey technique. We use the constructed MRIO table, which we make freely available online, to estimate the carbon footprint and carbon leakage of every region and consider the structure of emissions at the regional level from the standpoints of consumer and producer responsibility. The results reveal that production-based emissions often differ significantly from consumption-based emissions. In addition, the regional-level ratio of carbon leakage to carbon footprint is 51.7 % on average and ranges from 34.8 to 79.8 %. Furthermore, the effects of economic activity in and around Tokyo in terms of CO2 emissions and leakage vary across regions. JEL classification: Q54, R11, R15