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Handbook on Supply, Use and Input-Output Tables with Extensions and Applications
Abstract
The Handbook on Supply, Use and Input-Output Tables with Extensions and Applications is an update of the Handbook of National Accounting: Handbook of Input-Output Table Compilation and Analysis (United Nations, 1999) (available here https://unstats.un.org/unsd/publication/SeriesF/SeriesF_74E.pdf) to incorporate the changes in the international standards like the 2008 SNA and the BPM 6. The Handbook is part of a series of handbooks on national accounting to support of the implementation of the System of National Accounts 2008 (2008 SNA). The objective of this Handbook is to provide a step-by-step guidance for the compilation of Supply and Use Tables (SUTs) and Input-Output Tables (IOTs) and an overview of the possible extensions of SUTs and IOTs which increase their analytical usefulness.
... Therefore, the model reasonably realistically reflects both economic and physical linkages. The Clean-ProdLT combines input-output quantity and price models [36] but, unlike conventional input-output analysis, endogenises final consumption under representative agents' budget constraints. The general equilibrium in the model is achieved by combining the results of The general equilibrium model CleanProdLT is used as the primary tool for the socioeconomic impact evaluation presented in this paper. ...
... Therefore, the model reasonably realistically reflects both economic and physical linkages. The CleanProdLT combines input-output quantity and price models [36] but, unlike conventional input-output analysis, endogenises final consumption under representative agents' budget constraints. The general equilibrium in the model is achieved by combining the results of the price and quantity models with iterative computations to find the equilibrium in all the markets. ...
... While the steps discussed above represent the preparatory part of the general equilibrium simulation with the CleanProd model, the rest are dedicated to finding the new equilibrium state. Here, price and quantity models for input-output analysis [36] play a key role. ...
Although the negative environmental impact of plastic carrier bags has long been known, their use in Europe continues undiminished. Lithuania stands out for its high use and production of plastic bags. Governments and sustainability-driven businesses are taking various measures to reduce the environmental impact. Such measures include strategies to replace conventional plastic bags with paper or bioplastic bags, to reduce plastic bags by encouraging consumers to reuse them, and similar strategies. In contrast to the environmental impact of plastic bags, the socioeconomic effects of strategies to reduce their use have been much less studied in the scientific literature. Therefore, this paper analyses the impact of sustainability practices in the producing and using of carrier bags on Lithuania’s gross domestic product (GDP), employment and greenhouse gas (GHG) emissions. This study uses the CleanProdLT computable general equilibrium model based on the latest available data for 2020. The model allows for analysis of economy-wide effects by considering cleaner production and more sustainable consumption scenarios at different levels of detail. The results of the analysis show that while the analysed substitution of plastic bags with bioplastic (BioPlastic scenario) or paper bags (PaperBags scenario) has positive socioeconomic impacts, the overall best results can be achieved by reducing their consumption (ConsReduction scenario). In detail, it is estimated that the GDP could increase by EUR 18 million under the PaperBags scenario, by EUR 47 million under the BioPlastic scenario, and by EUR 64 million under the ConsReduction scenario. At the same time, employment increases by 213 jobs, 891 jobs, and 449 jobs, respectively. While the PaperBags and the BioPlastic scenarios reveal increases in GHG emissions of 4.5 ktCO2eq. and 29 ktCO2eq., respectively, the ConsReduction scenario demonstrates a decrease in GHG emissions of 4 ktCO2eq.. These findings suggest that the recent policy decision to charge for plastic bags in supermarkets will have positive environmental and socioeconomic impacts in the future.
... The basic structure of the social accounting matrix using SAMmodEU is depicted in Figure 1. In the SAMmodEU model, the intersectoral relationships are modelled in a way common to demand-driven quantity input-output models [24], but because a complete social accounting matrix is used, the modelling is extended to express full economic impacts. ...
... While preparing an EU-wide social accounting matrix employed in this research, social accounting matrices for most EU countries were created, and their consistency was checked. Some inconsistencies exist due to the use of the most recent data (e.g., when the data on non-financial transactions were updated after preparing and publishing the FIGARO dataset) and, possibly, other In the SAMmodEU model, the intersectoral relationships are modelled in a way common to demand-driven quantity input-output models [24], but because a complete social accounting matrix is used, the modelling is extended to express full economic impacts. ...
... First, the input coefficients are calculated for each product considering structural changes in industries defined in the scenarios. Then production and consumption are balanced by solving a linear equation system [24]. This gives only a partial equilibrium solution, so an iterative routine balances the entire social accounting matrix. ...
Food waste is a global multidimensional problem, with economic, social, and environmental dimensions linked to sustainable development. This study analyses the socio-economic and pollution effects of reducing food waste in the European Union. The food waste reduction scenarios analysed cover all segments of the supply chain from primary production to household consumption. Using the economy-wide model SAMmodEU, the impact of the scenarios is analysed in the context of the whole economy. Most scenarios analysed demonstrate positive socioeconomic effects in terms of a slight increase in gross domestic product and increasing employment. The multicriteria analysis indicates that the best overall performance is achieved by reducing food waste in the foodservice. It is recommended to focus on behaviour in policy design, thereby reducing food waste both in food services and in households and ensuring positive socioeconomic impacts.
... The IDE-JETRO (Meng et al., 2012) database also mainly focuses on Asian economies, which limits its usefulness for emerging economies in other world regions. FIGARO is a compilation of intercountry SUTs and IOTs at the EU level (Mahajan et al., 2018;Rémond-Tiedrez & Rueda-Cantuche, 2018. ...
Multi‐regional input–output (MRIO) models are widely used to analyze the economic interdependencies between regions in the context of global trade and environmental research. MRIO tables enable us to teleconnect the sectors in different regions along the supply chain and track both direct and indirect impacts of global production. Yet emerging economies—despite reshaping international trade patterns and playing an increasingly important role in the world economy—are not adequately represented in existing MRIO databases, which lack key detail on countries and sectors. To bridge this gap, our study presents EMERGING: Up‐to‐date and full‐scale MRIO tables covering 135 sectors in 245 economies over the period from 2015 to 2019. We describe in detail the steps in the development of the database and reconciliation and validation of bilateral trade data and national statistics. The EMERGING database is also designed to incorporate more official and publicly available data from national statistical institutes to ensure a high level of data quality, especially for these economies. We compare both national production‐based and consumption‐based value added generated from the EMERGING MRIO with the results from four major MRIO databases. Although global value‐added accounts are similar across databases, we find significant discrepancies at the level of individual countries and sectors concerning conflicting benchmark data.
... Using the Leontief input-output model (Miller and Blair, 2009;Mahajan et al., 2018), an open model and a model closed for households were built. This enables to address the full range of economic effects: ...
The Vltava River cascade with its series of dams and reservoirs has been traditionally an area of intense and diverse open-space recreation linked to water ecosystems. This study examines the effects of water-related tourism in this pilot area on the economy.
Using the Leontief input-output model based on the symmetric input-output table (SIOT) and data on yearly expenditure of recreationists, type I and II multipliers are derived for gross value added as indicator of economic effect. The results show that 1 CZK of tourists´ expenditure is associated with creation of about 0.41 to 0.53 CZK of regional gross value added (this also represents a proxy for the effect on regional gross domestic product). More than a half of the total effect of recreationists´ expenditure on the regional economy is realized through visitor purchases from economic sectors of accommodation and food service activities.
... Similarly, trade constraints should be expressed in basic prices excluding transportation, assurances and duties costs (Free on Board valuation). Indeed, basic prices reflect production costs best, which is consistent with the use of the Leontief quantity model and in line with the recommendation of (Mahajan et al., 2018). In order to ensure the validity of Equation 11 and to ensure balance between inputs and outputs in the base MRIO table, net taxes and subsidies on products are handled along with value added. ...
Multi-regional input–output (MRIO) data are a powerful tool to analyze complex interdependencies in the international trade and supply network. Their field of application is however limited by the fact that MRIO datasets are only available for past years whereas the structure of the international trade network has been found to change profoundly over time. We here propose the SPIN method, a simple and flexible algorithm that can project MRIO tables into the future based on transparent scenarios of how gross domestic product and trade relations may evolve in that time. By combining well-established input–output techniques, namely the Leontief quantity model and an RAS-type algorithm, our method provides a straightforward mean to convert quantitative scenarios of the world economy into consistent MRIO tables. We illustrate the functioning of the SPIN method by projecting the evolution of the trade network after the 2008 financial crisis under different alternative scenarios of recovery.
... In this regard, resorting to basic RAS or cross-entropy (Lamonica et al. 2020) could be somewhat misleading since LQs are applied in contexts that lack information. Adjustments are thus suggested for projections secured through the Euromethod or Path-RAS (Mahajan et al. 2018). Both techniques are, in a way, generalizations of the basic RAS and characterized by implementing other types of adjustments in light of the lack of available information. ...
This article seeks to verify the extent to which the formulation of two-dimensional location quotients (2D-LQ) entails a methodological advance in building or generating economic accounts related to sub-territories drawing from basic information. The input–output tables of the Euro Area 19 for 2010 and 2015 are references for analysis. We have used five statistics to measure similarity between true domestic coefficient matrices for ten countries (Austria, Belgium, Estonia, France, Germany, Italy, Latvia, Slovakia, Slovenia, and Spain) and the matrices they generate using nonsurvey techniques (CILQ, FLQ, AFLQ, and 2D-LQ). The focus substantially centers on ranking methodological efficiency by comparing the results of the four techniques mentioned above. The scope of the work employs standard parameters (associated with 2D-LQ) as guidance to ascertain the optimum parameters.
Balancing input–output tables using iterative proportional fitting techniques can be prevented due to conflicting information. What is to be done in such cases? Literature suggests a wide variety of alternative methods. Within iterative proportional fitting techniques, modifying the constraint set to circumvent conflicting information problems has been suggested as a promising avenue. Following this approach, we identify some opportunities for improvement not yet been addressed. As a result of this research, we present an iterative proportional fitting variant. Our algorithm uses information contained in the matrix to be balanced for dynamically modifying our constraint set. We ensure economically meaningful solutions, avoiding unsought sign flips. We also respect all macroeconomic aggregates. To illustrate our findings, we provide an empirical example based on the supply-use tables for the region of Galicia (Northwest Spain). Results suggest that our methodological proposal can yield estimates almost as accurate as other alternatives while avoiding undesired outcomes.
In input-output analysis, the Leontief and Ghosh models can be used to determine the price indexes of goods, which is convenient for analyzing inter-industry inflation. Their respective merits are debated, but both provide the same solution. We demonstrate that, contrary to common belief, it is superfluous to use the Leontief or Ghosh model to calculate price indexes: the price index vector alone satisfies the accounting identities without assuming constant coefficients. So, in contrast to the Leontief and Ghosh models, price indexes can be derived ‘instantly’, without a round-by-round process. Conducting research on price indexes deduce from the Leontief or Ghosh model becomes pointless: it suffices to study price indexes deduced from the data. We illustrate these findings with an application for France 2018. The same is demonstrated for prices with the data given in physical quantities.
Human activities interfere with natural Phosphorus (P) cycles by introducing increased levels of P emissions to air, land, and water. A supply-side analysis of P supply chains and associated P emissions can provide insights into underlying economic activities and transitions responsible for human-induced P emissions. Taking the mainland China as the case, this study constructs time-series physical input-output tables to describe P supply chains during 1949–2012. Subsequently, it identifies critical products and influencing factors of P supply chains enabling P emissions to the environment (including air, land, and water) from the supply perspective. The results show that phosphate rock, an important initial supplier of P from natural environment to China’s P supply chain, was responsible for 86% of P emissions in 2012. Moreover, food crops and livestock are important initial suppliers of P from soil to China’s P supply chain, through cultivation and pasturing, respectively. From 1949 to 2012, the change in primary input level was the largest driver of P emission increments, followed by changes in population, emission intensity, and primary input structure. On the contrary, changes in production structure reduced P emissions. These findings could support supply-side policy decisions on P emission control.
Households’ behaviour and consumption patterns are ultimately responsible for most global carbon emissions and therefore should be one main focus of sustainability policies. Detailed information provided by carbon footprints can help in that process by identifying factors and quantifying the environmental potential
from changes.
This chapter presents the calculated carbon footprints for Spanish single-person and average households using a multiregional input–output (MRIO) model and data from the Household Budget Survey (HBS).
This allows us to analyze the differences in consumption and emissions by gender and compare it to the baseline of the average consumption unit.We find a higher carbon footprint for men (5049
vs. 4947 kg CO2), resulting mainly from their higher level of consumption and their expending in transport, alcoholic beverages, tobacco and restaurants.
This carbon footprint for single-person households is still lower than for the average consumption unit (5123 kg CO2). When we focus on emissions from food consumption, we find however a larger carbon footprint for women as they tend to cook more at home, but double emissions from restaurants for men compared to women. Together
with reducing consumption and changing patterns away from specific products and services like transport, recycling is a crucial part of the environmental strategies. In this chapter, we use data from HBS food expenditure and life cycle emissions from PlasticsEurope (The circular economy for plastics—a European overview, 2020), emissions shares from plastic packaging by Poore and Nemecek (Science 360:987–
992, 2018) and total and percentages of recycled packaging from Ecoembes (Las cifras del reciclaje, 2019).
We compare the carbon footprint from recycled versus new plastic and calculate the potential reductions in emissions from increasing the share of recycling for households’ packaging.
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