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Hypothetical extractions from a global perspective

Author

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  • Erik Dietzenbacher
  • Bob van Burken
  • Yasushi Kondo

Abstract

The hypothetical extraction method (HEM) has been widely used to measure interindustry linkages and the importance of industries. HEM considers the hypothetical situation in which a certain industry is no longer operational. HEM was developed for national economies, using national input–output tables. When performing HEM, it is assumed (often implicitly) that the input requirements that were originally provided by the extracted industry are met by additional imports in the post-extraction situation. Applying HEM to global multiregional input–output tables then causes serious problems. It is no longer sufficient to assume that the required inputs are imported. Instead, it is necessary to indicate explicitly how much is imported from each origin to replace the original inputs. Our adaptation of HEM is the global extraction method (GEM). As an illustration, GEM is applied to the extraction of the motor vehicle industry in China, the US, and Germany, using the 2014 WIOD input–output table.

Suggested Citation

  • 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.
  • Handle: RePEc:taf:ecsysr:v:31:y:2019:i:4:p:505-519
    DOI: 10.1080/09535314.2018.1564135
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    3. Manfred Lenzen & Mengyu Li & Arunima Malik & Francesco Pomponi & Ya-Yen Sun & Thomas Wiedmann & Futu Faturay & Jacob Fry & Blanca Gallego & Arne Geschke & Jorge Gómez-Paredes & Keiichiro Kanemoto & St, 2020. "Global socio-economic losses and environmental gains from the Coronavirus pandemic," PLOS ONE, Public Library of Science, vol. 15(7), pages 1-13, July.
    4. Zhaocheng Li & Yu Song, 2022. "Energy Consumption Linkages of the Chinese Construction Sector," Energies, MDPI, vol. 15(5), pages 1-13, February.
    5. Maeno, Keitaro, 2023. "Identifying critical sectors in the restructuring of low-carbon global supply chains," Energy Economics, Elsevier, vol. 127(PA).
    6. Jan Streeck & Stefan Pauliuk & Hanspeter Wieland & Dominik Wiedenhofer, 2023. "A review of methods to trace material flows into final products in dynamic material flow analysis: From industry shipments in physical units to monetary input–output tables, Part 1," Journal of Industrial Ecology, Yale University, vol. 27(2), pages 436-456, April.
    7. 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.
    8. Luis E Pedauga & Ana Pardo-Fanjul & Juan C Redondo & José M Izquierdo, 2022. "Assessing the economic contribution of sports tourism events: A regional social accounting matrix analysis approach," Tourism Economics, , vol. 28(3), pages 599-620, May.
    9. Katsuhiro Sakurai & Hiroyuki Shibusawa, 2021. "The economic impact of the inland water fisheries/aquaculture industry: The case of the eel industry in Japan," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(6), pages 1729-1749, December.
    10. Severin Reissl & Alessandro Caiani & Francesco Lamperti & Tommaso Ferraresi & Leonardo Ghezzi, 2022. "A regional Input-Output model of the Covid-19 crisis in Italy: decomposing demand and supply factors," LEM Papers Series 2022/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    11. Rossella Bardazzi & Leonardo Ghezzi, 2022. "Large-scale multinational shocks and international trade: a non-zero-sum game," Economic Systems Research, Taylor & Francis Journals, vol. 34(4), pages 383-409, October.
    12. Lijun Su & Junshang Liang, 2021. "Understanding China’s New Dual Circulation Development Strategy: A Marxian Input-Output Analysis," Review of Radical Political Economics, Union for Radical Political Economics, vol. 53(4), pages 590-599, December.
    13. 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.
    14. Kirill Muradov, 2021. "Towards input–output‐based measurements of trade creation and trade diversion," The World Economy, Wiley Blackwell, vol. 44(6), pages 1814-1841, June.
    15. Balakrishnan, Srijith & Lim, Taehoon & Zhang, Zhanmin, 2022. "A methodology for evaluating the economic risks of hurricane-related disruptions to port operations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 162(C), pages 58-79.
    16. Ariel L. Wirkierman & Monica Bianchi & Anna Torriero, 2022. "Leontief Meets Markov: Sectoral Vulnerabilities Through Circular Connectivity," Networks and Spatial Economics, Springer, vol. 22(3), pages 659-690, September.
    17. Hertwich, Edgar, 2019. "The Carbon Footprint of Material Production Rises to 23% of Global Greenhouse Gas Emissions," SocArXiv n9ecw, Center for Open Science.
    18. Maeno, Keitaro & Tokito, Shohei & Kagawa, Shigemi, 2022. "CO2 mitigation through global supply chain restructuring," Energy Economics, Elsevier, vol. 105(C).
    19. Giammetti, Raffaele & Papi, Luca & Teobaldelli, Désirée & Ticchi, Davide, 2022. "The optimality of age-based lockdown policies," Journal of Policy Modeling, Elsevier, vol. 44(3), pages 722-738.
    20. Claudio Di Berardino & Ilaria Doganieri & Stefano D'Angelo & Gianni Onesti, 2023. "Intersectoral and intercountry linkages as drivers of employment growth in emerging economies: The case of Visegrád countries," Metroeconomica, Wiley Blackwell, vol. 74(1), pages 163-187, February.
    21. Jan Streeck & Hanspeter Wieland & Stefan Pauliuk & Barbara Plank & Kenichi Nakajima & Dominik Wiedenhofer, 2023. "A review of methods to trace material flows into final products in dynamic material flow analysis: Comparative application of six methods to the United States and EXIOBASE3 regions, Part 2," Journal of Industrial Ecology, Yale University, vol. 27(2), pages 457-475, April.
    22. J. Verschuur & E. E. Koks & J. W. Hall, 2022. "Ports’ criticality in international trade and global supply-chains," Nature Communications, Nature, vol. 13(1), pages 1-13, December.
    23. Maria Llop, 2022. "Quantifying the employment impacts of gross exports: a global accounting perspective," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 11(1), pages 1-17, December.

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