GHG accounts in Italy: alternative frameworks on the basis of producer or consumer responsibility

In a previous work we have analysed the relationship between trade flows and Greenhouse Gases (GHGs) emissions for Italy and the results revealed large embodiments of GHGs in imports. These results indicate that a different accounting scheme and responsibility principle should be considered. Therefore, this paper looks at what would be the amount of GHG for which Italy would be responsible under two different GHG accounting frameworks, which are based on the responsibility of either the producer or the consumer. Through an Input-Output (IO) model, the Pollution Terms of Trade (PTTs) for Italy towards different geo-economic areas and the GHG trade balance have been estimated for a time series covering the past decade (1991-2002), in order to determine what scenarios Italy would experience if its contribution to global warming would be based on the principle of the responsibility of the consumer or of the producer.