Social-ecological transformation index

This project assesses the sustainability of the German economy by recognizing that environmental degradation is not limited to carbon emissions or confined by national borders. It complements existing sustainability indicators by combining environmentally-extended input-output (EE-IO) tables with national-level sustainability thresholds based on the planetary boundary framework introduced by Rockström et al. (2009).

Two features of the data are particularly noteworthy. First, it provides a more accurate measure of aggregate environmental externalities than widely used life-cycle assessment approaches. Second, it captures pollution along the entire supply chain. This allows us to trace environmental impacts across geographic boundaries, economic sectors, and over time, reaching back to 1995 for seven environmentally relevant impact categories.

In an application of the index, we analyse Germany’s sustainability performance using a consumption-based perspective. This approach captures all externalities associated with consumption regardless of where products are produced. 

The analysis reveals two key findings. First, the German economy has transgressed five of the seven environmental impact categories since 1995. Second, progress toward sustainability has been limited, with 2020 levels remaining close to those in 1995.

Thanks to the granularity of the data, we can decompose these impacts in detail, understand their causes, and inform future policy interventions.

Rockström, J., Steffen, W., Noone, K. et al. A safe operating space for humanity. Nature 461, 472–475 (2009). https://doi.org/10.1038/461472a