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Mixing oil and water? Using hybrid input-output tables in a Structural decomposition analysis

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Author Info

  • Erik Dietzenbacher
  • Jesper Stage

Abstract

Input-output studies of energy use frequently adopt the so-called hybrid table, where the rows corresponding to energy sectors are in energy units rather than in monetary units. However, we show that, in structural decomposition analyses, this hybrid approach may induce arbitrary results that depend on the choice of units, rather than on changes in economic structure. This is because an economically meaningless sum of monetary and energy units enters the calculations. Our proposed solution to this problem is based on using a sum of monetary units instead, thus avoiding this attempt to mix oil and water.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500440803
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economic Systems Research.

Volume (Year): 18 (2006)
Issue (Month): 1 ()
Pages: 85-95

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Handle: RePEc:taf:ecsysr:v:18:y:2006:i:1:p:85-95

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Related research

Keywords: Structural decomposition analysis; input-output analysis; energy use; hybrid input-output tables;

References

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Citations

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Cited by:
  1. Massimiliano Mazzanti & Anna Montini, 2010. "Embedding the drivers of emission efficiency at regional level Analyses of NAMEA data," Working Papers 201008, University of Ferrara, Department of Economics.
  2. Maurizio Ciaschini, Rosita Pretaroli, Francesca Severini, Claudio Socci, 2010. "The economic impact of the Green Certificate market through the Macro Multiplier approach," Working Papers 26-2010, Macerata University, Department of Studies on Economic Development (DiSSE), revised May 2010.
  3. Paul De Boer, 2008. "Additive Structural Decomposition Analysis and Index Number Theory: An Empirical Application of the Montgomery Decomposition," Economic Systems Research, Taylor & Francis Journals, vol. 20(1), pages 97-109.
  4. 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.
  5. Weber, Christopher L., 2009. "Measuring structural change and energy use: Decomposition of the US economy from 1997 to 2002," Energy Policy, Elsevier, vol. 37(4), pages 1561-1570, April.

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