IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i21p11657-d661885.html
   My bibliography  Save this article

Macro Sustainability across Countries: Key Sector Environmentally Extended Input-Output Analysis

Author

Listed:
  • Stanislav Shmelev

    (Environment Europe Foundation Stichting, Fluwelen Burgwal 58, The Hague Humanity Hub, 2511CJ Hague, The Netherlands
    Environment Europe Limited, 38 Butler Close, Oxford OX2 6JG, UK)

  • Harrison Roger Brook

    (University of Edinburgh, Edinburgh EH8 9AB, UK)

Abstract

When formulating economic development strategies, the environment and society must be considered to preserve well-being. This paper proposes a comparative sustainability assessment method using environmentally extended input-output analysis and multi-criteria decision aid. Using symmetric input-output tables and sectoral CO 2 emissions and employment data for six countries, linkage coefficients are calculated for 163 sectors in each country. Multi-criteria decision aid tool, ELECTRE III, is used to derive outranking relationships among each country’s sectors using these coefficients as criteria, resulting in a hierarchy of sectors ordered by sustainability. Sectors that frequently appear at the top of the six hierarchies included education, health care, construction, and financial intermediation. China’s results differ significantly because of its concentration of economic activity on the primary/secondary sectors. The results can enable identification of key intervention pathways along which sustainable development could be stimulated. Country-specific recommendations and reflections on economic and sustainability policy initiatives are discussed.

Suggested Citation

  • Stanislav Shmelev & Harrison Roger Brook, 2021. "Macro Sustainability across Countries: Key Sector Environmentally Extended Input-Output Analysis," Sustainability, MDPI, vol. 13(21), pages 1-46, October.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:21:p:11657-:d:661885
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/21/11657/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/21/11657/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sonis, Michael & Guilhoto, Joaquim José Martins & Hewings, Geoffrey J.D. & Martins, Eduardo B., 1995. "Linkages, key sectors and structural change: some new perspectives," MPRA Paper 54754, University Library of Munich, Germany.
    2. Miyazawa, Kenichi, 1968. "Input-Output Analysis and Interrelational Income Multiplier as a Matrix," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 8(2), pages 39-58, February.
    3. Handfield, Robert & Walton, Steven V. & Sroufe, Robert & Melnyk, Steven A., 2002. "Applying environmental criteria to supplier assessment: A study in the application of the Analytical Hierarchy Process," European Journal of Operational Research, Elsevier, vol. 141(1), pages 70-87, August.
    4. Thomas Wiedmann, 2017. "An input–output virtual laboratory in practice – survey of uptake, usage and applications of the first operational IELab," Economic Systems Research, Taylor & Francis Journals, vol. 29(2), pages 296-312, April.
    5. Terrados, J. & Almonacid, G. & Pérez-Higueras, P., 2009. "Proposal for a combined methodology for renewable energy planning. Application to a Spanish region," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(8), pages 2022-2030, October.
    6. Shmelev, Stanislav E. & Rodríguez-Labajos, Beatriz, 2009. "Dynamic multidimensional assessment of sustainability at the macro level: The case of Austria," Ecological Economics, Elsevier, vol. 68(10), pages 2560-2573, August.
    7. Lenzen, Manfred, 2003. "Environmentally important paths, linkages and key sectors in the Australian economy," Structural Change and Economic Dynamics, Elsevier, vol. 14(1), pages 1-34, March.
    8. Muhammad Daaniyall Abd Rahman & Bart Los & Arne Geschke & Yanyan Xiao & Keiichiro Kanemoto & Manfred Lenzen, 2017. "A flexible adaptation of the WIOD database in a virtual laboratory," Economic Systems Research, Taylor & Francis Journals, vol. 29(2), pages 187-208, April.
    9. Ilkka Kananen & Pekka Korhonen & Jyrki Wallenius & Hannele Wallenius, 1990. "Multiple Objective Analysis of Input-Output Models for Emergency Management," Operations Research, INFORMS, vol. 38(2), pages 193-201, April.
    10. Dietzenbacher, Erik, 2005. "Waste treatment in physical input-output analysis," Ecological Economics, Elsevier, vol. 55(1), pages 11-23, October.
    11. Arne Geschke & Michalis Hadjikakou, 2017. "Virtual laboratories and MRIO analysis – an introduction," Economic Systems Research, Taylor & Francis Journals, vol. 29(2), pages 143-157, April.
    12. Rutger Hoekstra & Jeroen van den Bergh, 2002. "Structural Decomposition Analysis of Physical Flows in the Economy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(3), pages 357-378, November.
    13. Fatemeh Zahedi, 1986. "The Analytic Hierarchy Process---A Survey of the Method and its Applications," Interfaces, INFORMS, vol. 16(4), pages 96-108, August.
    14. Cabeza, Luisa F. & Rincón, Lídia & Vilariño, Virginia & Pérez, Gabriel & Castell, Albert, 2014. "Life cycle assessment (LCA) and life cycle energy analysis (LCEA) of buildings and the building sector: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 394-416.
    15. Baltussen, Rob & Youngkong, Sitapon & Paolucci, Francesco & Niessen, Louis, 2010. "Multi-criteria decision analysis to prioritize health interventions: Capitalizing on first experiences," Health Policy, Elsevier, vol. 96(3), pages 262-264, August.
    16. Miyazawa, Kenichi, 1966. "Internal and External Matrix Multipliers in the Input-Output Model," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 7(1), pages 38-55, June.
    17. Ferrer, Geraldo & Ayres, Robert U., 2000. "The impact of remanufacturing in the economy," Ecological Economics, Elsevier, vol. 32(3), pages 413-429, March.
    18. A. W. Anderson & T. W. Manning, 1983. "The Use of Input-Output Analysis in Evaluating Water Resource Development," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 31(1), pages 15-26, March.
    19. Matthew Gandy, 2004. "Rethinking urban metabolism: water, space and the modern city," City, Taylor & Francis Journals, vol. 8(3), pages 363-379, December.
    20. Hewings, Geoffrey J. D. & Fonseca, Manuel & Guilhoto, Joaquim & Sonis, Michael, 1989. "Key sectors and structural change in the Brazilian economy: A comparison of alternative approaches and their policy implications," Journal of Policy Modeling, Elsevier, vol. 11(1), pages 67-90.
    21. Andre Fernandes Tomon Avelino, 2017. "Disaggregating input–output tables in time: the temporal input–output framework," Economic Systems Research, Taylor & Francis Journals, vol. 29(3), pages 313-334, July.
    22. Nakamura, Shinichiro, 1999. "An interindustry approach to analyzing economic and environmental effects of the recycling of waste," Ecological Economics, Elsevier, vol. 28(1), pages 133-145, January.
    23. Shmelev, Stanislav E., 2011. "Dynamic sustainability assessment: The case of Russia in the period of transition (1985-2008)," Ecological Economics, Elsevier, vol. 70(11), pages 2039-2049, September.
    24. Duchin, Faye, 1990. "The conversion of biological materials and wastes to useful products," Structural Change and Economic Dynamics, Elsevier, vol. 1(2), pages 243-261, December.
    25. Yasushi Kondo & Shinichiro Nakamura, 2005. "Waste input-output linear programming model with its application to eco-efficiency analysis," Economic Systems Research, Taylor & Francis Journals, vol. 17(4), pages 393-408.
    26. Richard Baldwin & Javier Lopez-Gonzalez, 2015. "Supply-chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses," The World Economy, Wiley Blackwell, vol. 38(11), pages 1682-1721, November.
    27. Shmelev, Stanislav E. & Rodríguez-Labajos, Beatriz, 2009. "Corrigendum to "Dynamic multidimensional assessment of sustainability at the macro level: The case of Austria" [Ecological Economics 68 (2009) 2560-2573]," Ecological Economics, Elsevier, vol. 69(1), pages 209-209, November.
    28. Wang, Jiang-Jiang & Jing, You-Yin & Zhang, Chun-Fa & Zhao, Jun-Hong, 2009. "Review on multi-criteria decision analysis aid in sustainable energy decision-making," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2263-2278, December.
    29. Yasuhide Okuyama & Geoffrey J. D. Hewings & Michael Sonis, 2004. "Measuring Economic Impacts of Disasters: Interregional Input-Output Analysis Using Sequential Interindustry Model," Advances in Spatial Science, in: Yasuhide Okuyama & Stephanie E. Chang (ed.), Modeling Spatial and Economic Impacts of Disasters, chapter 5, pages 77-101, Springer.
    30. Proops, John L. R., 1984. "Modelling the energy-output ratio," Energy Economics, Elsevier, vol. 6(1), pages 47-51, January.
    31. Park, Se-Hark, 1982. "An input-output framework for analysing energy consumption," Energy Economics, Elsevier, vol. 4(2), pages 105-110, April.
    32. John Ehrenfeld & Nicholas Gertler, 1997. "Industrial Ecology in Practice: The Evolution of Interdependence at Kalundborg," Journal of Industrial Ecology, Yale University, vol. 1(1), pages 67-79, January.
    33. Valerie M. Thomas, 1997. "Industrial Ecology: Towards Closing the Materials Cycle," Journal of Industrial Ecology, Yale University, vol. 1(2), pages 149-151, April.
    34. Michael Sonis & J. D. Hewings & Jiemin Guo, 2000. "A New Image of Classical Key Sector Analysis: Minimum Information Decomposition of the Leontief Inverse," Economic Systems Research, Taylor & Francis Journals, vol. 12(3), pages 401-423.
    35. Kenichi Miyazawa, 1960. "Foreign Trade Multiplier, Input-Output Analysis and the Consumption Function," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 74(1), pages 53-64.
    36. Gay, Philip W. & Proops, John L.R., 1993. "Carbon---dioxide production by the UK economy: An input-output assessment," Applied Energy, Elsevier, vol. 44(2), pages 113-130.
    37. Miyazawa, Kenichi, 1971. "An Analysis of the Interdependence between Service and Goods-Producing Sectors," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 12(1), pages 10-21, June.
    38. Polenske, Karen R. & Lin, Xiannuan, 1993. "Conserving energy to reduce carbon dioxide emissions in China," Structural Change and Economic Dynamics, Elsevier, vol. 4(2), pages 249-265, December.
    39. Shmelev, Stanislav E. & van den Bergh, Jeroen C.J.M., 2016. "Optimal diversity of renewable energy alternatives under multiple criteria: An application to the UK," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 679-691.
    40. Herendeen, Robert & Tanaka, Jerry, 1976. "Energy cost of living," Energy, Elsevier, vol. 1(2), pages 165-178.
    41. Leontief, Wassily, 1977. "The future of the world economy+," Socio-Economic Planning Sciences, Elsevier, vol. 11(3), pages 171-182.
    42. Shital A. Thekdi & Joost R. Santos, 2016. "Supply Chain Vulnerability Analysis Using Scenario‐Based Input‐Output Modeling: Application to Port Operations," Risk Analysis, John Wiley & Sons, vol. 36(5), pages 1025-1039, May.
    43. Erik Dietzenbacher & Esther Velazquez, 2007. "Analysing Andalusian Virtual Water Trade in an Input-Output Framework," Regional Studies, Taylor & Francis Journals, vol. 41(2), pages 185-196.
    44. Guilhoto, J. J. M. & Sonis, M. & Hewings, G. J. D., 2005. "Linkages and Multipliers in a Multiregional Framework: Integration of Alternative Approaches," MPRA Paper 38213, University Library of Munich, Germany.
    45. Stanislav Edward Shmelev (ODID), "undated". "Dynamic Sustainability Assessment: The Case of Russia in the Period of Transition (1985-2007)," QEH Working Papers qehwps182, Queen Elizabeth House, University of Oxford.
    46. Nakamura, Shinichiro & Kondo, Yasushi, 2006. "A waste input-output life-cycle cost analysis of the recycling of end-of-life electrical home appliances," Ecological Economics, Elsevier, vol. 57(3), pages 494-506, May.
    47. Fumiya Nagashima & Shigemi Kagawa & Sangwon Suh & Keisuke Nansai & Daniel Moran, 2017. "Identifying critical supply chain paths and key sectors for mitigating primary carbonaceous PM mortality in Asia," Economic Systems Research, Taylor & Francis Journals, vol. 29(1), pages 105-123, January.
    48. Herman E. Daly, 1968. "On Economics as a Life Science," Journal of Political Economy, University of Chicago Press, vol. 76(3), pages 392-392.
    49. Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-271, August.
    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. Haolun Wang, 2022. "Sustainable Circular Supplier Selection in the Power Battery Industry Using a Linguistic T-Spherical Fuzzy MAGDM Model Based on the Improved ARAS Method," Sustainability, MDPI, vol. 14(13), pages 1-26, June.
    2. Junjie Cao & Yao Zhang & Taoyuan Wei & Hui Sun, 2021. "Temporal–Spatial Evolution and Influencing Factors of Coordinated Development of the Population, Resources, Economy and Environment (PREE) System: Evidence from 31 Provinces in China," IJERPH, MDPI, vol. 18(24), pages 1-22, December.

    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. Stanislav Edward Shmelev (ODID), "undated". "Environmentally Extended Input-Output Analysis of the UK Economy: Key Sector Analysis," QEH Working Papers qehwps183, Queen Elizabeth House, University of Oxford.
    2. Glenn A. Aguilar-Hernandez & Carlos Pablo Sigüenza-Sanchez & Franco Donati & João F. D. Rodrigues & Arnold Tukker, 2018. "Assessing circularity interventions: a review of EEIOA-based studies," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-24, December.
    3. Dilekli, Naci & Cazcarro, Ignacio, 2019. "Testing the SDG targets on water and sanitation using the world trade model with a waste, wastewater, and recycling framework," Ecological Economics, Elsevier, vol. 165(C), pages 1-1.
    4. Edgar Battand Towa Kouokam & Vanessa Zeller & Wouter Achten, 2019. "Input-output models and waste management analysis: A critical review," ULB Institutional Repository 2013/359535, ULB -- Universite Libre de Bruxelles.
    5. Shmelev, Stanislav E. & van den Bergh, Jeroen C.J.M., 2016. "Optimal diversity of renewable energy alternatives under multiple criteria: An application to the UK," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 679-691.
    6. Diaz-Balteiro, L & González-Pachón, J. & Romero, C., 2017. "Measuring systems sustainability with multi-criteria methods: A critical review," European Journal of Operational Research, Elsevier, vol. 258(2), pages 607-616.
    7. Court, Christa D., 2012. "Enhancing U.S. hazardous waste accounting through economic modeling," Ecological Economics, Elsevier, vol. 83(C), pages 79-89.
    8. Yousaf Ali & Rosita Pretaroli & Muhammad Sabir & Claudio Socci & Francesca Severini, 2020. "Structural changes in carbon dioxide (CO2) emissions in the United Kingdom (UK): an emission multiplier product matrix (EMPM) approach," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(8), pages 1545-1564, December.
    9. Glen Peters & Edgar Hertwich, 2006. "Structural analysis of international trade: Environmental impacts of Norway," Economic Systems Research, Taylor & Francis Journals, vol. 18(2), pages 155-181.
    10. He, He & Reynolds, Christian John & Li, Linyang & Boland, John, 2019. "Assessing net energy consumption of Australian economy from 2004–05 to 2014–15: Environmentally-extended input-output analysis, structural decomposition analysis, and linkage analysis," Applied Energy, Elsevier, vol. 240(C), pages 766-777.
    11. Ryoko Morioka & Keisuke Nansai & Koji Tsuda, 2018. "Role of linkage structures in supply chain for managing greenhouse gas emissions," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-21, December.
    12. C. Oliveira & D. Coelho & C. H. Antunes, 2016. "Coupling input–output analysis with multiobjective linear programming models for the study of economy–energy–environment–social (E3S) trade-offs: a review," Annals of Operations Research, Springer, vol. 247(2), pages 471-502, December.
    13. Taelim Choi & Randall W. Jackson & Nancey Green Leigh & Christa D. Jensen, 2011. "A Baseline Input—Output Model with Environmental Accounts (IOEA) Applied to E-Waste Recycling," International Regional Science Review, , vol. 34(1), pages 3-33, January.
    14. Wei Yang & Junnian Song, 2019. "Depicting Flows of Embodied Water Pollutant Discharge within Production System: Case of an Undeveloped Region," Sustainability, MDPI, vol. 11(14), pages 1-15, July.
    15. Liashenko Olena & Khrushch Lesya, 2018. "Determination of the environmental tax on the basis of modified input-output Leontief-Ford model," Technology audit and production reserves, 3(41) 2018, Socionet;Technology audit and production reserves, vol. 3(4(41)), pages 41-46.
    16. Kagawa, Shigemi & Nakamura, Shinichiro & Inamura, Hajime & Yamada, Masato, 2007. "Measuring spatial repercussion effects of regional waste management," Resources, Conservation & Recycling, Elsevier, vol. 51(1), pages 141-174.
    17. Guilhoto, Joaquim José Martins, 2011. "Análise de Insumo-Produto: Teoria e Fundamentos [Input-Output Analysis: Theory and Foundations]," MPRA Paper 32566, University Library of Munich, Germany.
    18. Andrew, Robbie & Forgie, Vicky, 2008. "A three-perspective view of greenhouse gas emission responsibilities in New Zealand," Ecological Economics, Elsevier, vol. 68(1-2), pages 194-204, December.
    19. Garbellini, Nadia & Wirkierman, Ariel Luis, 2014. "Blocks and circularity in labour requirements: An interplay between clusters and subsystems in the EU," Structural Change and Economic Dynamics, Elsevier, vol. 28(C), pages 60-74.
    20. Lin, Chen, 2009. "Hybrid input-output analysis of wastewater treatment and environmental impacts: A case study for the Tokyo Metropolis," Ecological Economics, Elsevier, vol. 68(7), pages 2096-2105, May.

    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:gam:jsusta:v:13:y:2021:i:21:p:11657-:d:661885. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.