Estimates of CO2Concentrations Based on Satellite Data and Their Usefulness in Developing a More Accurate Picture of Economic Activity
DOI:
https://doi.org/10.52731/lbds.v001.030Abstract
In this research, we propose a method of using data on CO2 concentrations based on observational data from the Greenhouse Gases Observing Satellite (GOSAT, also known as Ibuki) to arrive at an accurate picture of macroeconomic activity with minimal lag. In doing so, we build on our conventional approach of using fast-breaking consumption-related indicators, putting together an estimation model that includes—as a newly added feature—the data on CO2 concentrations derived from satellite observations, which are less susceptible to the sort of sampling bias that that can arise when drawing data from individual companies or other such narrow sources. What we find is that this updated model yields estimates of private consumption that are more accurate than what we have been able to produce with our conventional model based on consumption-related indicators, and that the updated model yields estimates of consumption that are reliably accurate even under the unusual circumstances created by the COVID-19 pandemic since 2020.
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