Simulating the impact of new industries on the economy: The case of biorefining in Australia

Arunima Malik, Manfred Lenzen, Rômulo Neves Ely and Erik Dietzenbacher

Ecological Economics, 2014, vol. 107, issue C, 84-93

Abstract: We investigate the economic and employment consequences of introducing a new sugarcane-based biofuel industry into Australia. We model the new biofuel industry on the production recipe of the existing large-scale gasoalcohol and alcohol sectors in the Brazilian economy. To this end we utilise a hybrid IO-LCA (input–output life cycle assessment) approach, which involves inserting data on new processes and/or sectors into an existing IO table. In particular, we develop and test an analytical and a numerical approach for re-balancing an IO table augmented with rows and columns representing large new biofuel industries. We quantify changes in economic output and employment in the Australian economy. We conclude that a future biofuel industry will be employment-positive for Australia.

Keywords: Input–output analysis; Hybrid LCA; Biofuel; Ethanol; Sugarcane; Employment (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:107:y:2014:i:c:p:84-93

DOI: 10.1016/j.ecolecon.2014.07.022

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