Input-Output Analysis of Energy Flows in Global Trade

Input-output analysis offers a system-wide perspective on the flow of energy embodied in goods and services as they cross national borders. By linking sectoral energy consumption data with inter-industry transaction tables, this approach quantifies both direct and indirect energy transfers associated with production, consumption and trade. In its multiregional form, input-output modelling can trace the movement of fossil fuels and renewable energy through complex supply chains, revealing how consumption in one country drives energy extraction or emissions in another. Such analyses underpin assessments of energy security, carbon footprint accounting and decarbonisation strategies by identifying critical trade links, sectoral hotspots and the extent to which nations offset domestic energy use through imports. They also support policy evaluation, showing how structural shifts—such as deindustrialisation or a transition to services—alter global energy intensity and security. Recent methodological advances combine input-output frameworks with decomposition techniques and network science to deliver finer spatial and temporal resolution, enabling decision makers to target interventions that enhance energy efficiency and reduce embodied emissions across the global value chain.

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Input-Output Analysis of Energy Flows in Global Trade publication trend

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Technical terms

Input-Output Analysis: A quantitative technique that links the consumption of energy and other resources to sectoral production and inter-industry trade flows.

Embodied Energy: The total direct and indirect energy required to produce a good or service, including upstream inputs.

Multiregional Input-Output (MRIO) Model: An extension of input-output analysis that captures economic and energy flows across multiple countries or regions in a unified framework.

Energy Intensity: A metric expressing the amount of energy consumed per unit of economic output, often used to gauge efficiency and decoupling.

Energy Extension Vector: A data construct in input-output models that assigns energy use either to points of extraction or points of final combustion, affecting consumption-based accounting.

References

1. Decoupling energy use and economic growth: Counter evidence from structural effects and embodied energy in trade. Applied Energy (2018).
2. Energy consumption-based accounts: A comparison of results using different energy extension vectors. Applied Energy (2017).
3. Linking Agricultural GHG Emissions to Global Trade Network. Earth's Future (2020).