This repository contains the code and material for Cahen-Fourot, L., Campiglio, E., Godin, A., Kemp-Benedict, E. and Trsek, S. (2021): "Capital stranding cascades: The impact of decarbonisation on productive asset utilisation". The article, published in Energy Economics, is available open-access here.
All code and data necessary to replicate the the results can be found in the Main folder. The main code file is Cascades_script.R. It requires the installation of R.
To run the main code, two additional files are required:
- A library of functions (Cascades_function_library.R)
- A version of the World Input-Output Database (WIOD) for the year 2014 (including capital stocks) in which the mining sector has been disaggregated into three separate sectors (WIOT2014_disaggregated.Rdata, see Data folder)
The disaggregation of the WIOD mining sector is conducted in separate preparatory code files (see WIOD_disaggregation for code and data). However, to run the main code, it is not necessary to run the preparatory code before.
- The script ICIO_FossilRatios.R computes ratios for the splitting of the WIOD mining sector from the OECD Inter-Country Input-Output (ICIO) table. This script requires the sector correspondence sheet ICIO_to_WIOD.xlsx as well as the OECD ICIO table for the year 2014. To run the code, please download the ICIO table in csv format from the OECD website.
- The script WIOD_MiningDisaggregation.R disaggregates the WIOD mining sector using the ratios from ICIO and balances the disaggregated table by means of a two-step RAS algorithm. It requires the raw WIOD table for the year 2014 (WIOT2014_October16_ROW.RData), the WIOD capital stock data and exchange rates for the same year (capital_stocks_wiod.csv & exchange_rate_wiod.csv) as well as the splitting ratios obtained from ICIO (FossilRatios2014_ICIO.Rdata).
The Results folder contains several tables and figures contained in the paper. Below we show some key figures (see paper for more details).
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Stranding cascade caused by a marginal supply shock in the global fossil mining sector (download interactive version)
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Stranding caused by domestic fossil sectors in other countries (Top 10 countries for external marginal stranding multipliers)
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Main stranding exposure links for the United States
Database: CC-BY 4.0: https://creativecommons.org/licenses/by/4.0/. The database we provide is a modified version of the WIOD database (http://www.wiod.org/home), also available with CC-BY 4.0 license. See also: Timmer, M. P., Dietzenbacher, E., Los, B., Stehrer, R. and de Vries, G. J. (2015), "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production", Review of International Economics., 23: 575–605.
Code: MIT (https://choosealicense.com/licenses/mit/); year: 2021; copyright holders: Louison Cahen-Fourot, Emanuele Campiglio, Antoine Godin, Eric Kemp-Benedict, Stefan Trsek.
For any questions or comments, please write to: [email protected]