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Using input-output analysis in design of industry-level and site-level economic and environmental sustainability indicators
Ari Paloviita, University of Jyväskylä, Finland
Sustainability indicators are applied from managerial perspective and from communication/ reporting perspective. Sustainability indicators for managerial purposes require site-specific information whereas indicators for communication/ reporting purposes may include average industry-level information. This paper illustrates the use of input-output analysis in design of industry-level and site-level economic and environmental sustainability indicators. Empirical case study of the Finnish forest sector includes environmental aspect (global warming potential GWP), financial economic aspect (value added) and non-financial economic aspect (number of employees). Absolute and relative, as well as cross-cutting sustainability indicators are derived from input-output tables and input-output analysis. Starting point for industry-level indicators are disaggregated macro-level data based on national input-output tables. Site-level indicators, in turn, rely on site-specific data and complementing industry-level data based on hybrid approach. Sustainability indicators derived by input-output analysis include total upstream supply chain impacts of an industry or a site. These indicators indicate more comprehensively industry or business contribution to sustainability, as they are connected to macro-level accounts.
 
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