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Inter-industry analysis, consumption structure, and the household waste production structure

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  • Shigemi Kagawa

Abstract

The standard waste input-output models for single region and multi-regions do not endogenously treat the dependent relationship between income distribution (household consumption) and household waste generation. As in Miyazawa and Masegi (1963), I introduce the propagation process of income distribution and household waste generation into the extended input-output analysis and reveal the hidden money flow resulting from the industrial and household waste disposal behaviour. From the empirical analysis, I find the endogenous income propagation effect resulting from the household waste treatments induced by unit household consumption (one million yen) was remarkably small, as compared to that for ordinary commodity productions. I also find that the contribution of industrial and household waste treatment and recycling activities to the 1995 Japanese economy was about one trillion yen (0.1% of the gross domestic output), considering the endogenous income propagation effects induced by the consumption behaviour of labours engaging in the waste treatments. Interestingly, the empirical results reveal that the contribution of one ton of the industrial waste to the Japanese economy was 5,730 yen, while one ton of the household waste brought about 8,266 yen of total economic impact. This indicates that the household waste disposal activity was more beneficial than the industrial waste disposal activity, considering the endogenous income propagation effects.

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  • Shigemi Kagawa, 2005. "Inter-industry analysis, consumption structure, and the household waste production structure," Economic Systems Research, Taylor & Francis Journals, vol. 17(4), pages 409-423.
    • Handle: RePEc:taf:ecsysr:v:17:y:2005:i:4:p:409-423
    DOI: 10.1080/09535310500283559
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    References listed on IDEAS

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    1. Koji Takase & Yasushi Kondo & Ayu Washizu, 2005. "An Analysis of Sustainable Consumption by the Waste Input‐Output Model," Journal of Industrial Ecology, Yale University, vol. 9(1‐2), pages 201-219, January.
    2. Shinichiro Nakamura & Yasushi Kondo, 2002. "Input‐Output Analysis of Waste Management," Journal of Industrial Ecology, Yale University, vol. 6(1), pages 39-63, January.
    3. Peter W. J. Batey & Adam Z. Rose, 1990. "Extended Input-Output Models: Progress and Potential," International Regional Science Review, , vol. 13(1-2), pages 27-49, April.
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