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

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  • 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.

Suggested Citation

  • Erik Dietzenbacher & Jesper Stage, 2006. "Mixing oil and water? Using hybrid input-output tables in a Structural decomposition analysis," Economic Systems Research, Taylor & Francis Journals, vol. 18(1), pages 85-95.
  • Handle: RePEc:taf:ecsysr:v:18:y:2006:i:1:p:85-95 DOI: 10.1080/09535310500440803
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    Cited by:

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    2. Chung, Whan-Sam & Tohno, Susumu & Choi, Ki-Hong, 2011. "Socio-technological impact analysis using an energy IO approach to GHG emissions issues in South Korea," Applied Energy, Elsevier, pages 3747-3758.
    3. Baghersad, Milad & Zobel, Christopher W., 2015. "Economic impact of production bottlenecks caused by disasters impacting interdependent industry sectors," International Journal of Production Economics, Elsevier, vol. 168(C), pages 71-80.
    4. 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.
    5. 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.
    6. repec:eee:enepol:v:107:y:2017:i:c:p:585-599 is not listed on IDEAS
    7. Behrens, Paul & Rodrigues, João F.D. & Brás, Tiago & Silva, Carlos, 2016. "Environmental, economic, and social impacts of feed-in tariffs: A Portuguese perspective 2000–2010," Applied Energy, Elsevier, pages 309-319.
    8. 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.
    9. 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, pages 97-109.
    10. Ferreira Neto, Amir B. & Perobelli, Fernando S. & Bastos, Suzana Q.A., 2014. "Comparing energy use structures: An input–output decomposition analysis of large economies," Energy Economics, Elsevier, vol. 43(C), pages 102-113.
    11. Keshab Bhattarai, 2007. "Input–Output and General Equilibrium Models for Hull and Humber Region in England," Atlantic Economic Journal, Springer;International Atlantic Economic Society, pages 473-490.
    12. 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.
    13. Mazzanti, Massimiliano & Montini, Anna, 2010. "Embedding the drivers of emission efficiency at regional level -- Analyses of NAMEA data," Ecological Economics, Elsevier, vol. 69(12), pages 2457-2467, October.
    14. repec:eee:energy:v:128:y:2017:i:c:p:145-151 is not listed on IDEAS
    15. Keshab Bhattarai, 2007. "Input–Output and General Equilibrium Models for Hull and Humber Region in England," Atlantic Economic Journal, Springer;International Atlantic Economic Society, pages 473-490.
    16. Wang, Fei & Dong, Baomin & Yin, Xiaopeng & An, Chi, 2014. "China's structural change: A new SDA model," Economic Modelling, Elsevier, vol. 43(C), pages 256-266.
    17. Butnar, Isabela & Llop, Maria, 2011. "Structural decomposition analysis and input-output subsystems: Changes in CO2 emissions of Spanish service sectors (2000-2005)," Ecological Economics, Elsevier, vol. 70(11), pages 2012-2019, September.
    18. Choi, Jun-Ki & Bakshi, Bhavik R. & Hubacek, Klaus & Nader, Jordan, 2016. "A sequential input–output framework to analyze the economic and environmental implications of energy policies: Gas taxes and fuel subsidies," Applied Energy, Elsevier, pages 830-839.
    19. Llop, Maria, 2017. "Changes in energy output in a regional economy: A structural decomposition analysis," Energy, Elsevier, vol. 128(C), pages 145-151.

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