Stangl, J., Borsos, A., Diem, C. et al. Firm-level supply chains to minimize unemployment and economic losses in rapid decarbonization scenarios. Nat Sustain 7, 581–589 (2024)

Objective:

• The role of the firm-level production network in the propagation and amplification of economic shocks originating from rapid decarbonization

Case:

• Hungary

Methodology:

• The loss of economic output (OW-ESRI):
  • $OW-ESRI_j = \sum_i \frac{s_i^{out}}{\sum_l s_l^{out}}[1-h_i(T)]$
• Remove firms

Data Source

• Financial transactions: National Bank of Hungary

Findings:

• Summarize IAM model
• For the firm joined ETS, most of them cluster around low emissions and low economic relevance

• The firm with the highest CO2 emissions in 2019 accounts for 6.98% of total carbon emissions
• 1% of job would be lost in the short term if firms were to stop its production but 7% of annual co2 emissions could be saved

• The ‘Remove largest emitters first’ can reach the highest emission savings

Coding Reference:

• Python EU Transaction Log
• R and Python