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Internalization of human labor in embodied energy analysis: Definition and application of a novel approach based on Environmentally extended Input-Output analysis

Matteo V. Rocco and Emanuela Colombo

Applied Energy, 2016, vol. 182, issue C, 590-601

Abstract: One of the most controversial topics in energy analysis consists in the internalization of the effects of human labor in the embodied energy requirements of goods and services. In this paper, the Bioeconomic Input-Output model is proposed to address such issue: it consists in a partially closed Hybrid Input-Output model in which the production of human labor is internalized within the economy as a new productive sector. The human labor sector absorbs a portion of the national final demand, while it produces working hours in order to sustain the national economic activities. The Bioeconomic model causes a reallocation of the total energy embodied in the production of goods and services due to two overlapping effects: a change in the national production technology due to the definition of the human labor sector, and a reduction in the available final demand for the consumptions of the households.

Keywords: Human labor; Embodied energy; Input-Output analysis; Life Cycle Assessment (search for similar items in EconPapers)
Date: 2016
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Handle: RePEc:eee:appene:v:182:y:2016:i:c:p:590-601