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A green input-output model and social accounting matrix
Contributions to the IGEM
- Dr. Xin Zhou
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A green input-output model and social accounting matrix - - PowerPoint PPT Presentation
A green input-output model and social accounting matrix - - PowerPoint PPT Presentation
A green input-output model and social accounting matrix Contributions to the IGEM Dr. Xin Zhou Principal Policy Researcher and Leader of Green Economy Area Institute for Global Environmental Strategies (IGES) Technical Workshop on Designing an
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Fundamentals of an input-output model
- The framework of an IO model
An IO model is an economic accounting framework which presents the inter-industry transactions in terms of monetary values of the flows of products from each of the producing sectors (as a seller) to each of the purchasing sectors (as a buyer).
1 … j … n 1 x 11 … x 1j … x 1n c 1 i 1 g 1 e 1 X 1 … … … … … … … … … i x i1 … x ij … x in c i i i g i e i X i … … … … … … … … … n x n1 … x nj … x nn c n i n g n e n X n v 1 … v j … v n v c v i v g v e V m 1 … m j … m n m c m i m g M X 1 … X i … X n C I G E Total inputs (X ) Final demand Purchasing sectors Producing sectors Total
- utputs (X )
Value-added (v' ) Imports (m )
- The basics of an input-output analysis
F AX X BF F A I X
1
) (
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Input-output model, social accounting matrix and CGE
- Social accounting matrix
A Social Accounting Matrix (SAM) is a double-entry economy-wide data framework representing the economy of a nation with incomes located along its row and the expenditures along its column.
1 … n Capital Labor Domestic indirect tax Import tariffs Household Government Investment 1 … n Capital Labor Domestic indirect tax Import tariffs Household Household income Government Government revenue from production taxes Government revenue from import tariffs Government revenue from direct taxes on households Government income Investment Household savings Government savings External savings Savings Foreign outflow Household expenditures Government expenditures Investment Foreign inflow External Total External Value-added from capital services Value-added from labor services Factor Indirect Tax Final Demand Activity Activity costs (gross input) Factor expenditures Tax expenditure Imports Total Intermediate inputs Household consumption Government consumption Investment Activity Factor Activity income (gross output) Exports Indirect Tax Final Demand Factor income Tax revenue Production tax Import tariffs Factor income to households
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Features of a green IO-SAM
- Greenness: Green sectors vs. conventional
sectors
e.g. Renewable energy vs. fossil fuel-based energy Recycling sector Sustainable agriculture and forestry, etc.
- Social inclusiveness: Disaggregated labour
markets
e.g. different income groups gender groups urban vs. rural, etc.
- Environmental extensions
e.g. Carbon footprints accounting from consumer perspective
Skilled (S) Unskilled (US)
Female (F) Male (M)
Male (M) Female (F) Labor (L)
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Linking the green IO-SAM with the CGE
- Green IO-SAM as the basic database for an empirical CGE
- IO-SAM is used to build the production function of different sectors
including the green sectors;
- The base-year SAM is used to estimates coefficients and exogenous
variables;
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Steps towards constructing a green IO-SAM
- Step 1: A green IO model
1 … j … n n+1 1 x 11 … x 1j … x' 1n x' 1,n+1 c 1 i 1 g 1 e 1 X 1 … … … … … … … … … … i x i1 … x ij … x' in x' i,n+1 c i i i g i e i X i … … … … … … … … … … n x' n,1 … x' n,j … x' n,n x' n,n+1 c' n i' n g' n e' n X' n n+1 x' n+1,1 … x' n+1,j … x' n+1,n x' n+1,n+1 c' n+1 i' n+1 g' n+1 e' n+1 X' n+1 v 1 … v j … v' n v' n+1 v c v i v g v e V m 1 … m j … m' n m' n+1 m c m i m g M X 1 … X i … X' n X' n+1 C I G E Total inputs (X ) Purchasing sectors Final demand Total
- utputs (X )
Producing sectors Value-added (v' ) Imports (m )
Follows a supply chain approach; EGSS vs. greening the production and process
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Steps towards constructing a green IO-SAM
- Step 2: A green SAM
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Steps towards constructing a green IO-SAM
- Step 3: Mapping EGSS with corresponding IO
sectors: Japanese case
- EGSS consists of activities which produce goods and services to
measure, prevent, limit, minimize or correct environmental damage to water, air and soil, as well as problems related to waste, noise and eco-systems. – by OECD/Eurostat (1999)
- MOEJ conducted annual surveys on the market size of environmental
industry since 2000 following the 1999 OECD’s EGSS classification.
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A green IO-SAM for Mexican renewable energy simulation
- Construction of a renewable energy-expanded IO-SAM for Mexican
renewable energy simulation
- CGE model, built upon the energy-expanded IO-SAM, can simulate the
impacts of policy interventions, such as a FIT or RPS, on energy supply and demand as well as the economy-wide responses.
σE
Electricity (E) Electricity from Conventional Resources (CS) Electricity from Renewable Resources (RS)
Natural Gas (NG)
Coal (CO) Wind (W) Solar PV (SP) Hydro (HY) Geothermal (GE) Biomass (BI) σRS σCS
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Mapping renewable energy with Mexican IO
- A renewable energy-expanded IO-SAM requires to present renewable
energies and their associated production chains explicitly in relevant IO sector classification.
- In current Mexican IOs, either the industry by industry (262 sectors) or
the product by product (814 products), there is no specific classifications related to renewable energies and associated production chains.
- Needs to map renewable energy with Mexican IO sector classification
which is based on the NAISC.
- Use Japanese study (Zhou, et al., 2015) of the mapping of renewable
energies with ISIC and the correspondence of ISIC and NAISC.
gure 17. Mapping renewable energy sectors/EGSS with Mexican IO sector classifications
Japanese revised EGSS sector classification 2012 ISIC Version 3.1 ISIC Version 4 NAISC sector classifications Mexican IO sector classifications
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