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Optimization based structural decomposition analysis as a tool for supporting environmental policymaking

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  • Lach, Łukasz

Abstract

A new tool for supporting environmental policymaking presented in this paper combines the ease of interpretation of structural decomposition analysis in the environmentally extended input-output (EEIO) model with versality of MINLP optimization. The approach allows finding those coefficients in EEIO model in the case of which a small change of their levels leads to a large reduction of industrial GHG emissions. In the illustrative empirical example the proposed approach is first implemented in GAMS and next used to identify GHG-emissions-important IO coefficients in Poland.

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  • Lach, Łukasz, 2022. "Optimization based structural decomposition analysis as a tool for supporting environmental policymaking," Energy Economics, Elsevier, vol. 115(C).
    • Handle: RePEc:eee:eneeco:v:115:y:2022:i:c:s0140988322004613
    DOI: 10.1016/j.eneco.2022.106332
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    References listed on IDEAS

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