Consumption-based Material Flow Accounting: Austrian Trade and Consumption in Raw Material Equivalents 1995-2007

Area of Science:

• Environmental Accounting
• Resource Management
• Ecological Economics

Background:

• Austrian economy heavily relies on trade, with imports comprising 34% of material input and exports contributing 60% to GDP in 2007.
• Standard Material Flow Accounting (MFA) frameworks do not fully capture upstream material inputs for traded goods.

Purpose of the Study:

• To calculate Raw Material Equivalents (RME) for Austria's trade and consumption from 1995-2007.
• To evaluate consumption-based perspectives in environmental accounting.
• To highlight the need for updated MFA in open economies.

Main Methods:

• A hybrid approach combining an environmentally extended input-output model with life cycle inventory data.
• Analysis of annual supply and use tables and MFA data for exports and competitive imports.
• Extraction of upstream material input coefficients for noncompetitive imports.

Main Results:

• Upstream material inputs (RME) for Austrian trade were approximately three times larger than the trade flows.
• In 2007, Austria's total raw material consumption exceeded its domestic material consumption by 15% (30 million tonnes).
• Significant differences were observed in the material composition and temporal dynamics of these flows.

Conclusions:

• A consumption-based perspective is crucial for accurate Material Flow Accounting in open economies.
• Robust indicators for dematerialization and resource efficiency require accounting for upstream RME.
• Current MFA frameworks may underestimate the environmental impact of international trade.