IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v71y2014icp159-172.html
   My bibliography  Save this article

Handling uncertainty in Multi Regional Input-Output models by entropy maximization and fuzzy programming

Author

Listed:
  • Caggiani, Leonardo
  • Ottomanelli, Michele
  • Dell’Orco, Mauro

Abstract

Recently, great attention has been paid to the uncertainties associated with Multi Regional Input-Output (MRIO) models related to the available data sources. We propose a new method based on the entropy maximization principle and fuzzy optimization, which takes explicitly into account the uncertainty embedded in available information. It allows to estimate jointly the values of production level, the trade coefficients and the final demand values assuming the availability of incomplete and/or approximate data on some elements of trade coefficients and of final demand of goods. The model, applied to real scale problem, shows good estimation performances and robustness in different scenario.

Suggested Citation

  • Caggiani, Leonardo & Ottomanelli, Michele & Dell’Orco, Mauro, 2014. "Handling uncertainty in Multi Regional Input-Output models by entropy maximization and fuzzy programming," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 71(C), pages 159-172.
    • Handle: RePEc:eee:transe:v:71:y:2014:i:c:p:159-172
    DOI: 10.1016/j.tre.2014.09.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554514001604
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2014.09.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Turner, Karen & Lenzen, Manfred & Wiedmann, Thomas & Barrett, John, 2007. "Examining the global environmental impact of regional consumption activities -- Part 1: A technical note on combining input-output and ecological footprint analysis," Ecological Economics, Elsevier, vol. 62(1), pages 37-44, April.
    2. Sergio Rey & Guy West & Mark Janikas, 2004. "Uncertainty in Integrated Regional Models," Economic Systems Research, Taylor & Francis Journals, vol. 16(3), pages 259-277.
    3. Malcolm Beynon & Max Munday & Annette Roberts, 2005. "Ranking sectors using fuzzy output multipliers," Economic Systems Research, Taylor & Francis Journals, vol. 17(3), pages 237-253.
    4. Druckman, Angela & Jackson, Tim, 2009. "The carbon footprint of UK households 1990-2004: A socio-economically disaggregated, quasi-multi-regional input-output model," Ecological Economics, Elsevier, vol. 68(7), pages 2066-2077, May.
    5. Ennio Cascetta, 2009. "Transportation Systems Analysis," Springer Optimization and Its Applications, Springer, number 978-0-387-75857-2, September.
    6. McGregor, Peter G. & Swales, J. Kim & Turner, Karen, 2008. "The CO2 'trade balance' between Scotland and the rest of the UK: Performing a multi-region environmental input-output analysis with limited data," Ecological Economics, Elsevier, vol. 66(4), pages 662-673, July.
    7. Manfred Lenzen & Lise-Lotte Pade & Jesper Munksgaard, 2004. "CO2 Multipliers in Multi-region Input-Output Models," Economic Systems Research, Taylor & Francis Journals, vol. 16(4), pages 391-412.
    8. Manfred Lenzen, 2001. "A Generalized Input-Output Multiplier Calculus for Australia," Economic Systems Research, Taylor & Francis Journals, vol. 13(1), pages 65-92.
    9. Nijkamp, Peter, 1975. "Reflections on gravity and entropy models," Regional Science and Urban Economics, Elsevier, vol. 5(2), pages 203-225, May.
    10. Yousef Shafahi & Reza Faturechi, 2009. "A new fuzzy approach to estimate the O--D matrix from link volumes," Transportation Planning and Technology, Taylor & Francis Journals, vol. 32(6), pages 499-526, September.
    11. Barbara Diaz & Laura Moniche & Antonio Morillas, 2006. "A Fuzzy clustering approach to the key sectors of the Spanish economy," Economic Systems Research, Taylor & Francis Journals, vol. 18(3), pages 299-318.
    12. Bougheas, Spiros & Demetriades, Panicos O. & Morgenroth, Edgar L. W., 1999. "Infrastructure, transport costs and trade," Journal of International Economics, Elsevier, vol. 47(1), pages 169-189, February.
    13. Wiedmann, Thomas & Wilting, Harry C. & Lenzen, Manfred & Lutter, Stephan & Palm, Viveka, 2011. "Quo Vadis MRIO? Methodological, data and institutional requirements for multi-region input-output analysis," Ecological Economics, Elsevier, vol. 70(11), pages 1937-1945, September.
    14. John R. Roy, 2004. "Regional input-output analysis, data and uncertainty," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(3), pages 397-412, September.
    15. Tan, Raymond R. & Aviso, Kathleen B. & Barilea, Ivan U. & Culaba, Alvin B. & Cruz, Jose B., 2012. "A fuzzy multi-regional input–output optimization model for biomass production and trade under resource and footprint constraints," Applied Energy, Elsevier, vol. 90(1), pages 154-160.
    16. Beynon, Malcolm J. & Munday, Max, 2008. "Considering the effects of imprecision and uncertainty in ecological footprint estimation: An approach in a fuzzy environment," Ecological Economics, Elsevier, vol. 67(3), pages 373-383, October.
    17. Zhao, Yong & Kockelman, Kara M., 2004. "The random-utility-based multiregional input-output model: solution existence and uniqueness," Transportation Research Part B: Methodological, Elsevier, vol. 38(9), pages 789-807, November.
    18. Peters, Glen P., 2008. "From production-based to consumption-based national emission inventories," Ecological Economics, Elsevier, vol. 65(1), pages 13-23, March.
    19. Wiedmann, Thomas, 2009. "A review of recent multi-region input-output models used for consumption-based emission and resource accounting," Ecological Economics, Elsevier, vol. 69(2), pages 211-222, December.
    20. Harker, Patrick T. & Friesz, Terry L., 1986. "Prediction of intercity freight flows, I: Theory," Transportation Research Part B: Methodological, Elsevier, vol. 20(2), pages 139-153, April.
    21. J. C. Minx & T. Wiedmann & R. Wood & G. P. Peters & M. Lenzen & A. Owen & K. Scott & J. Barrett & K. Hubacek & G. Baiocchi & A. Paul & E. Dawkins & J. Briggs & D. Guan & S. Suh & F. Ackerman, 2009. "Input-Output Analysis And Carbon Footprinting: An Overview Of Applications," Economic Systems Research, Taylor & Francis Journals, vol. 21(3), pages 187-216.
    22. Harker, Patrick T. & Friesz, Terry L., 1986. "Prediction of intercity freight flows, II: Mathematical formulations," Transportation Research Part B: Methodological, Elsevier, vol. 20(2), pages 155-174, April.
    23. Buckley, J. J., 1989. "Fuzzy input-output analysis," European Journal of Operational Research, Elsevier, vol. 39(1), pages 54-60, March.
    24. Malcolm James Beynon & Max Munday, 2007. "An Aggregated Regional Economic Input–Output Analysis within a Fuzzy Environment," Spatial Economic Analysis, Taylor & Francis Journals, vol. 2(3), pages 281-296.
    25. Bárbara Díaz & Antonio Morillas, 2011. "Incorporating uncertainty in the coefficients and multipliers of an IO table: A case study," Papers in Regional Science, Wiley Blackwell, vol. 90(4), pages 845-861, November.
    26. JiYoung Park & Peter Gordon & James Moore & Harry Richardson, 2009. "A two-step approach to estimating state-to-state commodity trade flows," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(4), pages 1033-1072, December.
    27. Manfred Lenzen & Richard Wood & Thomas Wiedmann, 2010. "Uncertainty Analysis For Multi-Region Input-Output Models - A Case Study Of The Uk'S Carbon Footprint," Economic Systems Research, Taylor & Francis Journals, vol. 22(1), pages 43-63.
    28. Harry C. Wilting, 2012. "Sensitivity And Uncertainty Analysis In Mrio Modelling; Some Empirical Results With Regard To The Dutch Carbon Footprint," Economic Systems Research, Taylor & Francis Journals, vol. 24(2), pages 141-171, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hiramatsu, Tomoru & Inoue, Hiroki & Kato, Yasuhiko, 2016. "Estimation of interregional input–output table using hybrid algorithm of the RAS method and real-coded genetic algorithm," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 385-402.
    2. Liao, Haolan & Zhang, Qingyu & Li, Lu, 2023. "Optimal procurement strategy for multi-echelon remanufacturing systems under quality uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    3. Igor Lazov, 2019. "A Methodology for Revenue Analysis of Parking Lots," Networks and Spatial Economics, Springer, vol. 19(1), pages 177-198, March.
    4. Wanke, Peter & Barros, C.P. & Nwaogbe, Obioma R., 2016. "Assessing productive efficiency in Nigerian airports using Fuzzy-DEA," Transport Policy, Elsevier, vol. 49(C), pages 9-19.
    5. Kuljanin, Jovana & Kalić, Milica & Caggiani, Leonardo & Ottomanelli, Michele, 2019. "A comparative efficiency and productivity analysis: Implication to airlines located in Central and South-East Europe," Journal of Air Transport Management, Elsevier, vol. 78(C), pages 152-163.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shaojian Qu & Hao Cai & Dandan Xu & Nabé Mohamed, 2021. "Uncertainty in the prediction and management of CO2 emissions: a robust minimum entropy approach," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 107(3), pages 2419-2438, July.
    2. Umed Temurshoev, 2015. "Uncertainty treatment in input-output analysis," Working Papers 2015-004, Universidad Loyola Andalucía, Department of Economics.
    3. Guo, Ju’e & Zhang, Zengkai & Meng, Lei, 2012. "China’s provincial CO2 emissions embodied in international and interprovincial trade," Energy Policy, Elsevier, vol. 42(C), pages 486-497.
    4. Hermannsson, Kristinn & McIntyre, Stuart G., 2014. "Local consumption and territorial based accounting for CO2 emissions," Ecological Economics, Elsevier, vol. 104(C), pages 1-11.
    5. Dolter, Brett & Victor, Peter A., 2016. "Casting a long shadow: Demand-based accounting of Canada's greenhouse gas emissions responsibility," Ecological Economics, Elsevier, vol. 127(C), pages 156-164.
    6. Makiko Tsukui & Shigemi Kagawa & Yasushi Kondo, 2015. "Measuring the waste footprint of cities in Japan: an interregional waste input–output analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 4(1), pages 1-24, December.
    7. Hristov, Jordan & Surry, Yves, 2013. "Considering the Effect of Uncertainty in an Input-Output Analysis of Water Consumption: A Fuzzy Approach Applied to Macedonia," 2013 Conference: Tools for decision support in agriculture and rural development, April 18-19, 2013, Krško, Slovenia 183913, Slovenian Association of Agricultural Economists (DAES).
    8. Tian, Xin & Chang, Miao & Lin, Chen & Tanikawa, Hiroki, 2014. "China’s carbon footprint: A regional perspective on the effect of transitions in consumption and production patterns," Applied Energy, Elsevier, vol. 123(C), pages 19-28.
    9. Wiedmann, Thomas & Wilting, Harry C. & Lenzen, Manfred & Lutter, Stephan & Palm, Viveka, 2011. "Quo Vadis MRIO? Methodological, data and institutional requirements for multi-region input-output analysis," Ecological Economics, Elsevier, vol. 70(11), pages 1937-1945, September.
    10. Sato, Misato, 2014. "Product level embodied carbon flows in bilateral trade," Ecological Economics, Elsevier, vol. 105(C), pages 106-117.
    11. Misato Sato, 2014. "Embodied Carbon In Trade: A Survey Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 28(5), pages 831-861, December.
    12. Zhou, Xin & Imura, Hidefumi, 2011. "How does consumer behavior influence regional ecological footprints? An empirical analysis for Chinese regions based on the multi-region input–output model," Ecological Economics, Elsevier, vol. 71(C), pages 171-179.
    13. Daniel Moran & Richard Wood, 2014. "Convergence Between The Eora, Wiod, Exiobase, And Openeu'S Consumption-Based Carbon Accounts," Economic Systems Research, Taylor & Francis Journals, vol. 26(3), pages 245-261, September.
    14. Yulei Xie & Ling Ji & Beibei Zhang & Gordon Huang, 2018. "Evolution of the Scientific Literature on Input–Output Analysis: A Bibliometric Analysis of 1990–2017," Sustainability, MDPI, vol. 10(9), pages 1-17, September.
    15. Mi, Zhifu & Zhang, Yunkun & Guan, Dabo & Shan, Yuli & Liu, Zhu & Cong, Ronggang & Yuan, Xiao-Chen & Wei, Yi-Ming, 2016. "Consumption-based emission accounting for Chinese cities," Applied Energy, Elsevier, vol. 184(C), pages 1073-1081.
    16. Yu, Dejian & Xu, Chao, 2017. "Mapping research on carbon emissions trading: a co-citation analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1314-1322.
    17. Anderson, Blake & M'Gonigle, Michael, 2012. "Does ecological economics have a future?," Ecological Economics, Elsevier, vol. 84(C), pages 37-48.
    18. Satoshi Honma & Yushi Yoshida, 2019. "Convergence in pollution terms of trade," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 28(5), pages 603-627, July.
    19. Zhang, Zengkai & Guo, Ju'e & Hewings, Geoffrey J.D., 2014. "The effects of direct trade within China on regional and national CO2 emissions," Energy Economics, Elsevier, vol. 46(C), pages 161-175.
    20. Felipe Avilés-Lucero & Gabriel Peraita & Camilo Valladares, 2021. "Huella de Carbono para la Economía Chilena 2017," Economic Statistics Series 135, Central Bank of Chile.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:71:y:2014:i:c:p:159-172. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.