IDEAS home Printed from https://ideas.repec.org/a/bla/inecol/v28y2024i4p736-750.html

Linking hypothetical extraction, the accumulation of production factors, and the addition of value

Author

Listed:
  • Edgar G. Hertwich
  • Maximilian Koslowski
  • Kajwan Rasul

Abstract

In industrial ecology, approaches have been developed to analyze the contribution of specific sectors to environmental impacts within supply chains. In economics, a range of methods addresses the forward linkage (use of output) and backward linkage (dependency on inputs) of sectors, and the analysis of key sectors. This article offers a formal investigation of the relationship between these. It shows that both the analysis of supply chain impacts and of intersectoral linkages can be seen as special cases of a more general hypothetical extraction method (HEM). In HEM, sectors' role is assessed as the effect of their removal on the input–output model's solution. HEM also allows for the (partial) extraction of individual transactions. HEM thus offers a flexible approach to assessing the contribution of one or several sectors, or transactions, or parts thereof, to value added or footprint of any final demand. It can be applied to study the environmental footprints of companies or intermediate products, the contribution of certain inputs to sectors, or the potential impact of disruptions of supply chains on producers and consumers. In this article, the price model for HEM is introduced to identify the contribution of the extracted (target) sectors to the price or unit footprint of a commodity.

Suggested Citation

  • Edgar G. Hertwich & Maximilian Koslowski & Kajwan Rasul, 2024. "Linking hypothetical extraction, the accumulation of production factors, and the addition of value," Journal of Industrial Ecology, Yale University, vol. 28(4), pages 736-750, August.
    • Handle: RePEc:bla:inecol:v:28:y:2024:i:4:p:736-750
    DOI: 10.1111/jiec.13522
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jiec.13522
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jiec.13522?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Clements, Benedict J., 1990. "On the decomposition and normalization of interindustry linkages," Economics Letters, Elsevier, vol. 33(4), pages 337-340, August.
    2. Stefan Pauliuk & Guillaume Majeau-Bettez & Daniel B. Müller, 2015. "A General System Structure and Accounting Framework for Socioeconomic Metabolism," Journal of Industrial Ecology, Yale University, vol. 19(5), pages 728-741, October.
    3. Chika Aoki‐Suzuki & Sébastien M. R. Dente & Daisuke Tanaka & Chihiro Kayo & Shinsuke Murakami & Chiharu Fujii & Kiyotaka Tahara & Seiji Hashimoto, 2021. "Total environmental impacts of Japanese material production," Journal of Industrial Ecology, Yale University, vol. 25(6), pages 1474-1485, December.
    4. Duarte, Rosa & Sanchez-Choliz, Julio & Bielsa, Jorge, 2002. "Water use in the Spanish economy: an input-output approach," Ecological Economics, Elsevier, vol. 43(1), pages 71-85, November.
    5. Guerra, Ana-Isabel & Sancho, Ferran, 2010. "Measuring energy linkages with the hypothetical extraction method: An application to Spain," Energy Economics, Elsevier, vol. 32(4), pages 831-837, July.
    6. Erik Dietzenbacher & Bob van Burken & Yasushi Kondo, 2019. "Hypothetical extractions from a global perspective," Economic Systems Research, Taylor & Francis Journals, vol. 31(4), pages 505-519, October.
    7. Hertwich, Edgar, 2023. "Addendum to Increased carbon footprint of materials production driven by rise in investments," SocArXiv 6pjxg, Center for Open Science.
    8. Erik Dietzenbacher & Michael L. Lahr, 2013. "Expanding Extractions," Economic Systems Research, Taylor & Francis Journals, vol. 25(3), pages 341-360, September.
    9. Umed Temurshoev, 2010. "Identifying Optimal Sector Groupings With The Hypothetical Extraction Method," Journal of Regional Science, Wiley Blackwell, vol. 50(4), pages 872-890, October.
    10. Wang, Yuan & Wang, Wenqin & Mao, Guozhu & Cai, Hua & Zuo, Jian & Wang, Lili & Zhao, Peng, 2013. "Industrial CO2 emissions in China based on the hypothetical extraction method: Linkage analysis," Energy Policy, Elsevier, vol. 62(C), pages 1238-1244.
    11. Ronald E. Miller, 1966. "Interregional Feedback Effects In Input‐Output Models: Some Preliminary Results," Papers in Regional Science, Wiley Blackwell, vol. 17(1), pages 105-125, January.
    12. Thijs Raa, 2020. "Linkages, fields of influence and key sectors," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-3, December.
    Full references (including those not matched with items on IDEAS)

    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. Zhaocheng Li & Yu Song, 2022. "Energy Consumption Linkages of the Chinese Construction Sector," Energies, MDPI, vol. 15(5), pages 1-13, February.
    2. Chen, Zhenni & Liu, Xi & Li, Jianglong, 2022. "Identifying channels of environmental impacts of transport sector through sectoral linkage analysis," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    3. Sajid, M. Jawad & Cao, Qingren & Kang, Wei, 2019. "Transport sector carbon linkages of EU's top seven emitters," Transport Policy, Elsevier, vol. 80(C), pages 24-38.
    4. Maeno, Keitaro & Tokito, Shohei & Kagawa, Shigemi, 2022. "CO2 mitigation through global supply chain restructuring," Energy Economics, Elsevier, vol. 105(C).
    5. Gervásio Ferreira dos Santos & Luiz Carlos de Santana Ribeiro & Rodrigo Barbosa de Cerqueira, 2020. "The informal sector and Covid‐19 economic impacts: The case of Bahia, Brazil," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(6), pages 1273-1285, December.
    6. Hertwich, Edgar, 2019. "The Carbon Footprint of Material Production Rises to 23% of Global Greenhouse Gas Emissions," SocArXiv n9ecw, Center for Open Science.
    7. Yue-Jun Zhang & Xiao-Juan Bian & Weiping Tan, 2018. "The linkages of sectoral carbon dioxide emission caused by household consumption in China: evidence from the hypothetical extraction method," Empirical Economics, Springer, vol. 54(4), pages 1743-1775, June.
    8. Wang, Yuan & Wang, Wenqin & Mao, Guozhu & Cai, Hua & Zuo, Jian & Wang, Lili & Zhao, Peng, 2013. "Industrial CO2 emissions in China based on the hypothetical extraction method: Linkage analysis," Energy Policy, Elsevier, vol. 62(C), pages 1238-1244.
    9. Maeno, Keitaro, 2023. "Identifying critical sectors in the restructuring of low-carbon global supply chains," Energy Economics, Elsevier, vol. 127(PA).
    10. Bai, Hongtao & Feng, Xiangyu & Hou, Huimin & He, Gang & Dong, Yan & Xu, He, 2018. "Mapping inter-industrial CO2 flows within China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 400-408.
    11. Shinichiro Kimura, 2022. "Secular change of interdependencies in the clusters of the Japanese motor vehicle industry: a case study in the Tokai region," SN Business & Economics, Springer, vol. 2(11), pages 1-12, November.
    12. repec:osf:osfxxx:meqhx_v1 is not listed on IDEAS
    13. Li, Yingzhu & Lin, Yingchao & Su, Bin, 2025. "Analysis of China's energy consumption and intensity during the 13th five-year plan period," Energy Policy, Elsevier, vol. 198(C).
    14. Feng, Chao & Pan, Guohao & Yang, Jun, 2025. "Identification of key renewable energy sectors for global energy transition based on industrial linkage analysis," Renewable Energy, Elsevier, vol. 245(C).
    15. Muhammad Jawad Sajid & Ernesto D. R. Santibanez Gonzalez, 2021. "The Impact of Direct and Indirect COVID-19 Related Demand Shocks on Sectoral CO 2 Emissions: Evidence from Major Asia Pacific Countries," Sustainability, MDPI, vol. 13(16), pages 1-19, August.
    16. Allan, Grant J. & Ross, Andrew G., 2019. "The characteristics of energy employment in a system-wide context," Energy Economics, Elsevier, vol. 81(C), pages 238-258.
    17. Fitsum Semere Weldegiorgis & Evelyn Dietsche & Shabbir Ahmad, 2023. "Inter-Sectoral Economic Linkages in the Mining Industries of Botswana and Tanzania: Analysis Using Partial Hypothetical Extraction Method," Resources, MDPI, vol. 12(7), pages 1-26, June.
    18. Christos Tsirimokos, 2025. "A Comprehensive Input–Output Analysis Model for Quantifying Environmental Linkages and Leakages: Evidence from Greece," Biophysical Economics and Resource Quality, Springer, vol. 10(1), pages 1-22, June.
    19. Eduardo Amaral Haddad & Fernando Salgueiro Perobelli & Inácio Fernandes Araújo, 2020. "Input-Output Analysis of COVID-19: Methodology for Assessing the Impacts of Lockdown Measures," TD NEREUS 1-2020, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    20. Raffaele Giammetti, 2019. "Tariffs, Domestic Import Substitution and Trade Diversion in Input-Output Production Networks: how to deal with Brexit," Mo.Fi.R. Working Papers 152, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    21. Di Noia, Jlenia & Caiani, Alessandro & Cesarini, Luigi & Arosio, Marcello & Monteleone, Beatrice, 2025. "A high resolution input–output model to assess the economic impact of floods," Journal of Economic Behavior & Organization, Elsevier, vol. 230(C).

    More about this item

    Statistics

    Access and download statistics

    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:bla:inecol:v:28:y:2024:i:4:p:736-750. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1088-1980 .

    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.