Identifying the Role of Final Consumption in Structural Path Analysis: An Application to Water Uses

Maria Llop and Xavier Ponce Alifonso
Authors registered in the RePEc Author Service: Xavier Ponce-Alifonso

Working Papers from Universitat Rovira i Virgili, Department of Economics

Abstract: The complexity of the connexions within an economic system can only be reliably reflected in academic research if powerful methods are used. Researchers have used Structural Path Analysis (SPA) to capture not only the linkages within the production system but also the propagation of the effects into different channels of impacts. However, the SPA literature has restricted itself to showing the relations among sectors of production, while the connections between these sectors and final consumption have attracted little attention. In order to consider the complete set of channels involved, in this paper we propose a structural path method that endogenously incorporates not only sectors of production but also the final consumption of the economy. The empirical application comprises water usages, and analyses the dissemination of exogenous impacts into various channels of water consumption. The results show that the responsibility for water stress is imputed to different sectors and depends on the hypothesis used for the role played by final consumption in the model. This highlights the importance of consumers’ decisions in the determination of ecological impacts. Keywords: Input-Output Analysis, Structural Path Analysis, Final Consumption, Water uses.

Keywords: Consum (Economia); Aigua -- Utilització; Anàlisi d'entrada/sortida; 338 - Situació econòmica. Política econòmica. Gestió; control i planificació de l'economia. Producció. Serveis. Turisme. Preus (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Identifying the role of final consumption in structural path analysis: An application to water uses (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:urv:wpaper:2072/237598

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