Greenhouse/Environmental "Impacts"

Michael, this is from the on-line documentation by Maria Lucas

"The coefficients do not double count in that they do not include the emissions associated with the upstream industries/suppliers. For example, the emissions associated with the automobile manufacturing Industry do not include emissions associated with the production of car parts or other inputs produced by other Industries; the emissions associated with producing those inputs would be accounted for in the coefficients for those suppliers’ respective Industries. Basically, the emissions associated with the tire production or the manufacturing of headlights are not included."

As I read this it implies that emissions associated with the indirect and induced effects (specifically indirect in this example) are NOT included.  Hence my question.

My apologies, it would seem as though I may have misinterpreted your initial question. 

Going in line with Maria's example: If we were to set up/run an analysis modeling an increase in automobile manufacturing Output, we would receive Direct, Indirect, and Induced Environmental impact results from with this increase in production (just as we would see Direct/Indirect/Induced Output).

In that case, the Direct Environmental impacts would be those associated only with the automobile manufacturing Industry itself, not the Industries supplying the inputs necessary to build more cars. The Industries included in the Indirect/Induced effects will subsequently have their own Environmental impacts based on Industry specific Environment Units per dollar of Output coefficients.

Best,

Michael Nealy    

OK, so I would have to run the model multiple times to get the backward linkage environmental impacts?

Here is my specific situation, looking at the greenhouse gases associated with different types of farming (e.g., dairy vs beef vs crops vs....).  I run a hypothetical $1 million increase in demand.  I get the traditional impact reports with the multiplier effects.  The environmental impacts that IMPLAN produces is it only those greenhouse gases associated with the $1 million shock (direct effects) (as I read Maria's post), or does it include the greenhouse gases associated with the indirect and induced effects?  Your last sentence seems to suggest the answer to the second part of the question is "no" the indirect and induced are not included, but your first paragraph in the above response the answer to the second part of the question is "yes".

I think what you are saying is that if I run a dairy farm impact of $1 million, there is an associated environmental impact linked to the $1 million.  That is what IMPLAN is producing.  But there is an indirect/induced impact on say trucking of...oh, say $100,000 in TIO.  Would I need to do a second run with shocking trucking by $100,000? and so on till the multiplier effect falls below some threshold.

Nope, just need to run the model once! Doing so would produce Direct, Indirect, and Induced Environmental Results. Those Indirect and Induced Environmental emissions are being calculated as multiplying the Indirect/Induced Output results(by Industry) times the Environment Units per dollar of Output coefficients for each Industry. Again this is done on an Industry by Industry basis because the coefficients are Industry specific.  For reference, here is what the summary Environmental results tables look's like:

The Direct line there will be all of the Environmental Impacts caused only by the Industry we chose to shock, such as dairy farming. Similarly, the Indirect line will be all of the Environmental Impacts generated as a result of the dairy farm purchasing intermediate goods for production. Lastly, the Induced line will show the Environmental Impacts stemming from the workers in the Direct and Indirect effects spending their income.

To be more direct: "The environmental impacts that IMPLAN produces is it only those greenhouse gases associated with the $1 million shock (direct effects) (as I read Maria's post), or does it include the greenhouse gases associated with the indirect and induced effects?"

The answer to that questions is yes, it does include greenhouse gases associated with the Indirect and Induced effects. However, the Environmental coefficients for the dairy farming Industry would not take those Indirect and Induced Effects into account, only the Direct (unless they purchase from themselves, in which case that coefficient would also be used to calculate a portion of the Indirect/Induced Environmental results).

Best,

Michael Nealy

I got ya.   So if you look at the total impact on TIO in industry detail it is applying the environmental coefficients for each respective industry that is impacted by the initial shock.

That is correct! 

took a few tries, but we got it.  Thanks