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The Supply-Use Based Econometric (SUBE) approach was proposed to calculate stochastic input–output multipliers from rectangular supply-use tables under the product technology assumption. However, the resulting total use of direct requirements stimulated by final demand (be they carbon emissions, labor, etc.) may differ from the actual total use of direct requirements. To solve this problem, we propose in this paper a two-stage SUBE approach, which takes as prior the initially estimated SUBE multipliers and obtains a posterior set of two-stage SUBE multipliers by constrained least squares minimization. We illustrate the results with an empirical application for carbon emissions in the Portuguese economy in 2005.

Food consumption causes, together with mobility, shelter and the use of electrical products, most life cycle impacts of consumption. Meat and dairy are among the highest contributors to environmental impacts from food consumption. A healthier diet might have less environmental impacts. Using the E3IOT environmentally extended input output database developed in an EU study on Environmental Impacts of Products (EIPRO), this paper estimates the difference in impacts between the European status quo and three simulated diet baskets, i.e. a pattern according to universal dietary recommendations, the same pattern with reduced meat consumption, and a 'Mediterranean' pattern with reduced meat consumption. Production technologies, protein and energy intake were kept constant. Though this implies just moderate dietary shifts, impact reductions of up to 8% were possible in reduced meat scenarios. The slightly changed food costs do not lead to significant first order rebound effects. Second order rebounds were estimated by applying the CAPRI partial equilibrium model. This analysis showed that European meat production sector will most likely respond by higher exports to compensate for losses on the domestic meat market. Higher impact reductions probably would need more drastic diet changes. © 2011 Elsevier B.V.

Climate change research is currently a topic of great interest for economic researchers. In particular, environmental input–output analysis increasingly plays an important role in measuring the economic and environmental effects of sustainable development policies in Europe. Other approaches also exist, such as econometric modelling, in which impacts are quantified on statistical grounds and with certain desirable properties (efficient estimates, confidence intervals, hypothesis testing, etc.) that are not found in the input–output approach. Consequently, this paper merges the two approaches to address the calculation of unbiased and consistent carbon dioxide emission multipliers for Denmark and their respective confidence intervals. The use of the supply and use system instead of the symmetric input–output table also presents the opportunity to avoid the common problems associated with the construction of technical coefficients (technology assumptions, negatives, etc.). Moreover, a new policy-relevant application of these multipliers is introduced: the quantification of the performance of the carbon dioxide emission reductions carried out by industries via external trading.