Quantifying the doughnut economy: A conceptual framework using multi-regional input-output modeling

Advancing sustainable development requires addressing the trade-offs between ecological sustainability and social well-being through holistic assessment approaches. Current efforts often cover all dimensions of sustainability by employing extensive sets of indicators that mix means and goals. Yet, this can result in selective indicator use, overlooking certain aspects, or data overload, ultimately causing confusion. The Doughnut Economics (DE) framework offers a compelling alternative by suggesting an economy that operates within the Planetary Boundaries (PBs), while ensuring no one falls below the Social Foundation (SF). Efforts have been made to operationalize the DE, however, studies remain largely informative and do not involve direct modeling between social and ecological systems. To address this gap, this study presents a conceptual framework that embeds environmentally-extended input-output (EEIO) models in a doughnut-economy-like setup. It is built on the hypothesis of a causal link between basic human needs (SFs) and the consumption of goods and services. Specifically, we expand the traditional consumption-driven EEIO model into a need-driven model to quantify the environmental impacts of meeting the SFs. The approach is illustrated through an example linking the “food” SF with “climate change” PB. Collaborative efforts among social scientists and EEIO modelers are essential to deepen the understanding of the links between spending and social needs.