Carbon and Water Footprint accounts of Italy: A Multi-Region Input-Output approach

This paper analyses the CO2 emissions and the water use embodied in international trade in Italy. It is well documented that consumption of goods places a considerable strain on the environment and this phenomenon is further exacerbated by imports for domestic usage, which entail exploitation of water and environment. In this respect, the analysis focuses on the determination of Italian carbon and water footprints, which are two indicators able to determine how the human activities affect the environment, through the Multiregional and multindustry Input-Output model based on the World-Input-Output Database. The results show that CO2 emissions and water use associated with Italian imports were greater than CO2 emissions and water use associated with Italian export, mainly because the exploitation of resources in Italy is higher in the consumption phase than in production processes.