Supply chain decoupling in green products: A granular input-output analysis

A-Tier
Journal: Energy Economics
Year: 2025
Volume: 149
Issue: C

Authors (7)

Attinasi, M.-G. (not in RePEc) Boeckelmann, L. (European Central Bank) de Castro Martins, B. (not in RePEc) Meunier, B. (Banque de France) Borin, A. (not in RePEc) Conteduca, F.P. (not in RePEc) Mancini, M. (not in RePEc)

Score contribution per author:

0.575 = (α=2.01 / 7 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper develops a novel methodology to enhance the granularity of Inter-Country Input-Output (ICIO) tables, addressing well-known distortions caused by sectoral aggregation –distortions that are particularly pronounced for products with low substitutability, such as those essential to the green transition. Using this framework, we construct a disaggregated ICIO table that single out 129 products essential to the energy transition into eight green sectors, including electric batteries, vehicles, rare earths, and renewable energy equipment. We simulate East-West supply chain decoupling in green products through a multi-country, multi-sector trade model calibrated with such disaggregated ICIO table. Results reveal substantial economic costs: welfare losses reach 3 % and trade between blocs contracts by 20 %, even when accounting for trade diversion through neutral countries. We also quantify how green supply chain fragmentation increases greenhouse gas emissions intensities, showing that trade barriers on clean-energy sectors create dual risks, undermining both economic efficiency and climate objectives.

Technical Details

RePEc Handle
repec:eee:eneeco:v:149:y:2025:i:c:s0140988325006000
Journal Field
Energy
Author Count
7
Added to Database
2026-01-24