Entropy-based Chinese City-level MRIO table Framework

Abstract

Cities are pivotal hubs of socioeconomic activities, and consumption in cities contributes to global environmental pressures. Compiling city-level multi-regional input-output (MRIO) tables is challenging due to the scarcity of city-level data. Here we propose an entropy-based framework to construct city-level MRIO tables. We demonstrate the new construction method and present an analysis of the carbon footprint of cities in China's Hebei province. A sensitivity analysis is conducted by introducing a weight reflecting the heterogeneity between city and province data, as an important source of uncertainty is the degree to which cities and provinces have an identical ratio of intermediate demand to total demand. We compare consumption-based emissions generated from the new MRIO to results of the MRIO based on individual city input-output tables. The findings reveal a large discrepancy in consumption-based emissions between the two MRIO tables but this is due to conflicting benchmark data used in the two tables.