Modelling energy system using three-dimensional input-output analysis

Yoshikuni Yoshida, Hisashi Ishitani, Ryuji Matsuhashi

International Journal of Global Energy Issues, 2000, vol. 13, issue 1/2/3, 86-101

Abstract: Input-output (I-O) analysis is frequently applied to the energy-environmental area, because not only the direct but also the indirect environmental repercussions of different patterns of final demand can be explored. I-O analysis has a structural deficiency in evaluating the system, including the production of by-products, since joint production is not assumed to appear in the theory of I-O analysis. Although several methods were developed so as to overcome this drawback, this problem has not been fundamentally solved. In this study, a three-dimensional input-output table (3DIO) is suggested in order to deal with joint production. 3DIO is an extension of the I-O table. It shows the interrelations between all of the activities and consists of I-O tables which are made for each commodity. The structure is described in the simple equations corresponding to the conventional I-O equations. The amount of produced commodities is correctly counted in 3DIO although the amount of by-products is not accurately counted in conventional methods. As an application of 3DIO analysis, we developed an energy-economic model and evaluated CO₂ emissions as well as economic growth, taking several measures for CO₂ abatement into account. One of the main characteristics of the model is that the measures involving joint production can be evaluated in the framework of I-O analysis. Computed results indicate that fuel switching in the power generation sector is the most cost-effective in the measures evaluated in this study. Then, fuel switching in industry heat, utilization of exhaust heat and CO₂ recycling follow in order of cost-effectiveness.

Keywords: 3DIO; joint production; energy-economic model. (search for similar items in EconPapers)
Date: 2000
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