Calculation of Ecological Land-Footprint – Based on the Input-Output Model and Focusing on the Imported Commodities

Abstract The ecological footprint has been a crucial ecological indicator for more than two decades, and the methodology for calculating it has developed significantly over the years. However, some issues and shortcomings still need to be addressed and specified further. This paper focuses on the embedded land requirements of imported commodities in input-output modelling approaches. Based on a critical review of two fundamental models in the field, we propose a refined model to overcome their shortcomings. Our model quantifies the embedded ecological land-footprint of imported commodities and their allocation between direct final consumption and production. Additionally, we allocate the latter again among final consumption and exports using the framework of linear algebra and matrix arithmetic. Moreover, we propose extending the model to overcome the general but misleading assumption in the literature that imported commodities have an equal per unit ecological footprint to domestic products, assuming that trading partners have the same technological background. JEL: Q56, D57