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Semi-closed input-output and structural decomposition analysis of embodied emissions and intensities

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  • Su, Bin
  • Ang, B.W.

Abstract

Input-output (I-O) analysis has been widely used in energy and emission studies, including in embodiment and intensity analyses. Most previous studies use the open I-O model (IOM) which does not account for household expenditure patterns within the system. When endogenizing the household sector, the semi-closed IOM provides feedback effects where the incomes generated by production are spent by households on goods and services. This will influence further production. Very few studies have compared the embodiment and aggregate embodied intensity (AEI) results obtained using the two different approaches, i.e., semi-closed IOM versus open IOM. None has dealt with the differences between the two IOM approaches in quantifying the drivers of embodiment and AEI changes. This paper proposes a systematic framework to study and compare their differences. An empirical study using China's latest datasets (2017 and 2020) is presented to reveal the scale of the differences at the final demand and sectoral levels. Implications of the findings and future research are discussed.

Suggested Citation

  • Su, Bin & Ang, B.W., 2025. "Semi-closed input-output and structural decomposition analysis of embodied emissions and intensities," Energy Economics, Elsevier, vol. 149(C).
    • Handle: RePEc:eee:eneeco:v:149:y:2025:i:c:s014098832500547x
    DOI: 10.1016/j.eneco.2025.108720
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    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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