IDEAS home Printed from https://ideas.repec.org/p/ccc/wpaper/001.html
   My bibliography  Save this paper

Basic analytical tool-kit for input-output tables with multiple related outputs: Applications to physical input-output tables with disposals to nature

Author

Listed:
  • Aleix Altimiras-Martin

    (Cambridge Centre for Climate Change Mitigation Research, Department of Land Economy, University of Cambridge
    NEREUS, Faculty of Economics and Administration, University of Sao Paulo)

Abstract

Physical Input-Output Tables (PIOTs) are a powerful accounting framework since they trace simultaneously all physical flows of the economy, including goods and emission. However, there is no IO model able to operate them and, thus, they cannot be used for analytical purposes - only descriptive. A series of papers suggested different methods to operate them but without clearly identifying a IO model matching the specificities of PIOTs (Hubacek and Giljum 2003; Giljum and Hubacek 2004; Suh 2004; Giljum, Hubacek, and Sun 2004; Dietzenbacher 2005; Dietzenbacher et al. 2009; Xu and Zhang 2009). This paper aims to develop an output-driven and an input-driven IO model to operate PIOTs, which would constitute the basic analytical tool-kit to analyse such tables. First, section 2 compares the operation of the traditional Input-Output Tables (IOTs) with PIOTs. It identifies a new type of table - a multiple related outputs IOT - that matches the specificities of a PIOT: it has several outputs (goods and emissions) and one of the outputs - the emissions - is related to the total sectoral throughput by the technology of production. Then, it is shown that the related output causes traditional output-driven IO models such as the Leontief one to underestimate the total outputs. Then, section 3 devises a new IO model by assuming a linear relationship between the related outputs (emissions) and the total throughput (total output or input); consequently, the related outputs such as the emissions can be endogenised in the structure of production and, thus, the model can be driven with final goods alone. Section 3.2 generalises the model for any number of multiple related outputs and shows how to operate a PIOT with five types of simultaneous emissions. Then, section 3.3 shows that Suh's (2004) method is in fact a change of total output units that transforms the PIOT - a multiple related outputs IOT - into a single output IOT that can then be operated with traditional IO models. For completeness, section 4 examines the use of input-driven models with multiple related output tables and finds that no special modification of the input-driven model is required. Thus, this paper provides the theoretical background to analyse PIOTs and any other multiple related outputs IOTs. It is expected that this new model will revive the momentum in PIOT development and analysis which had been lost because of the lack of robust analytical tools.

Suggested Citation

  • Aleix Altimiras-Martin, 2012. "Basic analytical tool-kit for input-output tables with multiple related outputs: Applications to physical input-output tables with disposals to nature," 4CMR Working Paper Series 001, University of Cambridge, Department of Land Economy, Cambridge Centre for Climate Change Mitigation Research.
    • Handle: RePEc:ccc:wpaper:001
    as

    Download full text from publisher

    File URL: http://be.4cmr.group.cam.ac.uk/working-papers/pdf/4cmr_wp_001.pdf
    File Function: First version, 2012
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bullard, Clark W. & Herendeen, Robert A., 1975. "The energy cost of goods and services," Energy Policy, Elsevier, vol. 3(4), pages 268-278, December.
    2. Giljum, Stefan & Hubacek, Klaus & Sun, Laixiang, 2004. "Beyond the simple material balance: a reply to Sangwon Suh's note on physical input-output analysis," Ecological Economics, Elsevier, vol. 48(1), pages 19-22, January.
    3. Kirsten S. Wiebe & Martin Bruckner & Stefan Giljum & Christian Lutz, 2012. "Calculating Energy-Related Co 2 Emissions Embodied In International Trade Using A Global Input--Output Model," Economic Systems Research, Taylor & Francis Journals, vol. 24(2), pages 113-139, November.
    4. Dietzenbacher, Erik, 2005. "Waste treatment in physical input-output analysis," Ecological Economics, Elsevier, vol. 55(1), pages 11-23, October.
    5. Hubacek, Klaus & Giljum, Stefan, 2003. "Applying physical input-output analysis to estimate land appropriation (ecological footprints) of international trade activities," Ecological Economics, Elsevier, vol. 44(1), pages 137-151, February.
    6. Suh, Sangwon, 2004. "A note on the calculus for physical input-output analysis and its application to land appropriation of international trade activities," Ecological Economics, Elsevier, vol. 48(1), pages 9-17, January.
    7. Stefan Giljum & Klaus Hubacek, 2004. "Alternative Approaches of Physical Input-Output Analysis to Estimate Primary Material Inputs of Production and Consumption Activities," Economic Systems Research, Taylor & Francis Journals, vol. 16(3), pages 301-310.
    8. Giorgio Nebbia, 2000. "Contabilit? monetaria e contabilit? ambientale," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2000(6).
    9. Erik Dietzenbacher & Esther Velazquez, 2007. "Analysing Andalusian Virtual Water Trade in an Input-Output Framework," Regional Studies, Taylor & Francis Journals, vol. 41(2), pages 185-196.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Erik Dietzenbacher & Umed Temurshoev, 2012. "Input-output impact analysis in current or constant prices: does it matter?," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 1(1), pages 1-18, December.
    2. Hoekstra, Rutger & van den Bergh, Jeroen C.J.M., 2006. "Constructing physical input-output tables for environmental modeling and accounting: Framework and illustrations," Ecological Economics, Elsevier, vol. 59(3), pages 375-393, September.
    3. Weisz, Helga & Duchin, Faye, 2006. "Physical and monetary input-output analysis: What makes the difference?," Ecological Economics, Elsevier, vol. 57(3), pages 534-541, May.
    4. Dietzenbacher, Erik, 2005. "Waste treatment in physical input-output analysis," Ecological Economics, Elsevier, vol. 55(1), pages 11-23, October.
    5. Anke Schaffartzik & Dominik Wiedenhofer & Nina Eisenmenger, 2015. "Raw Material Equivalents: The Challenges of Accounting for Sustainability in a Globalized World," Sustainability, MDPI, vol. 7(5), pages 1-26, April.
    6. Hanspeter Wieland & Stefan Giljum & Nina Eisenmenger & Dominik Wiedenhofer & Martin Bruckner & Anke Schaffartzik & Anne Owen, 2020. "Supply versus use designs of environmental extensions in input–output analysis: Conceptual and empirical implications for the case of energy," Journal of Industrial Ecology, Yale University, vol. 24(3), pages 548-563, June.
    7. Wiedmann, Thomas & Minx, Jan & Barrett, John & Wackernagel, Mathis, 2006. "Allocating ecological footprints to final consumption categories with input-output analysis," Ecological Economics, Elsevier, vol. 56(1), pages 28-48, January.
    8. Tramberend, Sylvia & Fischer, Günther & Bruckner, Martin & van Velthuizen, Harrij, 2019. "Our Common Cropland: Quantifying Global Agricultural Land Use from a Consumption Perspective," Ecological Economics, Elsevier, vol. 157(C), pages 332-341.
    9. López, Xesús Pereira & de la Torre Cuevas, Fernando, 2023. "An alternative for tracing the path between supply and use tables in current and constant prices," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 293-302.
    10. Cazcarro, I. & Hoekstra, A.Y. & Sánchez Chóliz, J., 2014. "The water footprint of tourism in Spain," Tourism Management, Elsevier, vol. 40(C), pages 90-101.
    11. Rodrigues, João & Domingos, Tiago, 2008. "Consumer and producer environmental responsibility: Comparing two approaches," Ecological Economics, Elsevier, vol. 66(2-3), pages 533-546, June.
    12. Juan C. Surís-Regueiro & José L. Santiago, 2016. "An Input-Output methodological proposal to quantifying socio economic impacts linked to supply shocks," Working Papers 1603, Universidade de Vigo, Departamento de Economía Aplicada.
    13. Chengpeng Lu & Xiaoli Pan & Xingpeng Chen & Jinhuang Mao & Jiaxing Pang & Bing Xue, 2021. "Modeling of Waste Flow in Industrial Symbiosis System at City-Region Level: A Case Study of Jinchang, China," Sustainability, MDPI, vol. 13(2), pages 1-17, January.
    14. Stanislav Shmelev & Harrison Roger Brook, 2021. "Macro Sustainability across Countries: Key Sector Environmentally Extended Input-Output Analysis," Sustainability, MDPI, vol. 13(21), pages 1-46, October.
    15. Mubako, Stanley & Lahiri, Sajal & Lant, Christopher, 2013. "Input–output analysis of virtual water transfers: Case study of California and Illinois," Ecological Economics, Elsevier, vol. 93(C), pages 230-238.
    16. Rutger Hoekstra & Marco Janssen, 2006. "Environmental responsibility and policy in a two-country dynamic input-output model," Economic Systems Research, Taylor & Francis Journals, vol. 18(1), pages 61-84.
    17. Bösch, Matthias & Elsasser, Peter & Rock, Joachim & Rüter, Sebastian & Weimar, Holger & Dieter, Matthias, 2017. "Costs and carbon sequestration potential of alternative forest management measures in Germany," Forest Policy and Economics, Elsevier, vol. 78(C), pages 88-97.
    18. Stanislav Edward Shmelev (ODID), "undated". "Environmentally Extended Input-Output Analysis of the UK Economy: Key Sector Analysis," QEH Working Papers qehwps183, Queen Elizabeth House, University of Oxford.
    19. Choi, Jun-Ki & Bakshi, Bhavik R. & Hubacek, Klaus & Nader, Jordan, 2016. "A sequential input–output framework to analyze the economic and environmental implications of energy policies: Gas taxes and fuel subsidies," Applied Energy, Elsevier, vol. 184(C), pages 830-839.
    20. Ferng, Jiun-Jiun, 2009. "Applying input-output analysis to scenario analysis of ecological footprints," Ecological Economics, Elsevier, vol. 69(2), pages 345-354, December.

    More about this item

    Keywords

    Physical input-output tables; Input-output analysis; Environmental Accounts; Waste; Emission; Material Flow Analysis; EW-MFA;
    All these keywords.

    JEL classification:

    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ccc:wpaper:001. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Aleix Altimiras-Martin (email available below). General contact details of provider: https://edirc.repec.org/data/cccamuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.