Value chain analysis methodologies in the context of environment and trade research

TLDR: In this article, four major fields of methodologies are identified: accounting of input-output flows, general computable equilibrium models, econometrics, and global commodity chain analysis, which can be applied to analyze the effects of standards (e.g. food, social, and environmental) as well as transaction costs on the income of households (micro level) or on trade volumes of countries (macro level).

Abstract: This paper gives an overview of different methodologies related to value chain analysis in the context of environment and trade research. Four major fields of methodologies are identified: Accounting of input-output flows, general computable equilibrium models, econometrics, and global commodity chain analysis. Accounting of flows includes different physical (e.g. life cycle assessment) and monetary (e.g. social accounting matrix) accounting frameworks providing the foundation for computable general equilibrium models. Econometric value chain analysis is widespread in the field of impact assessment of value chains. It can be applied to analyze the effects of standards (e.g. food, social, and environmental) as well as transaction costs on the income of households (micro level) or on trade volumes of countries (macro level). Global commodity chain analysis aims to identify and measure the balance of power between the participating actors.