Carbon footprint decomposition in MRIO models: identifying EU-supply chain hot-spots and their structural changes over time

Politics’ demand for informative consumption-based emission assessments based on multi-regional input-output (MRIO) databases is steadily increasing. Based on the MRIO database EXIOBASE 3, we exemplify the utility of a range of analytical tools and discus their potential insights for consumption-based policies. The analysis decomposes the overall EU carbon footprint into product groups as well as into emitting regions. Subsequently, we illustrate the potential of applying production layer decomposition (PLD) and structural path analysis (SPA) for the assessment of global supply-chains related to the EU carbon footprint and their structural changes over time. We close with some policy recommendations on reducing carbon footprint hot spots.