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ENVIMAT model

The ENVIMAT model is an environmentally extended input-output model of the Finnish economy, which can be used to assess the economic and environmental impacts of production activities and consumption.

Detailed model with long traditions

In the model, production activities are divided into 148 industries and 229 product groups. Final use is divided into seven categories: household consumption expenditure, consumption expenditure of non-profit institutions serving households, individual and collective consumption expenditure of government, gross fixed capital formation, changes in inventories, and exports. Household consumption expenditure is further divided into 62 consumption product groups, making the model's resolution relatively detailed.

The ENVIMAT model has been developed and maintained for over 15 years, with the latest version representing the year 2019. It is a static input-output model, providing a snapshot of the economy for one year. Similar environmentally extended input-output models for one or multiple regions are widely used globally.

The key background monetary data of the model include both open and purchased input-output and national accounts data from Statistics Finland. To achieve the detailed industry and product group resolution, additional data sources such as industrial output statistics, foreign trade statistics from Customs, and statistics from the Natural Resources Institute Finland (Luke) are utilized.

Environmental impacts in the ENVIMAT model include emissions to air, raw material use, land use and the resulting impact on biodiversity, water use and eutrophication.
 

The model can be combined with ready-made and self-constructed accounting data

Key sources in the compilation of environmental data include energy statistics, energy accounts and greenhouse gas inventory from Statistics Finland, air emission accounts, the environmental protection monitoring system VAHTI (YLVA), the CORINE land cover database, agricultural and forestry statistics from Luke, and various accounts compiled at SYKE, such as water accounts and material flow accounts (MFAfin). Data sources for material flow accounts include Luke and the Finnish Safety and Chemicals Agency (TUKES), as well as land extraction register NOTTO. Life cycle impact coefficients for imported products are estimated using the EXIOBASE model (a global multi-regional input-output model).

The model allows for the examination of results both from a production-based and consumption-based perspective. Consumption-based analysis considers the life cycle impacts of the entire value chain, including imports. Of the consumption-based indicators, the model produces, for example, raw material consumption (RMC) and consumption-based greenhouse gas emissions.
 

The model can be used to examine questions such as:

  • What are the economic drivers of environmental pressures?
  • Which commodity groups cause the most lifecycle greenhouse gas emissions
  • Which industries are the most material-intensive?
  • How much land area abroad is required to satisfy Finland's final use?
  • In which part of the value chain do the largest greenhouse gas emissions occur for a specific product group?
  • What is Finland's carbon/water/material footprint?
  • What are the economic, employment, and environmental impacts of a specific investment?