Structural Path Analysis

From Open Risk Manual

Definition

Structural Path Analysis (SPA) denotes[1] a procedure based on consumer accounts that breaks analysis indicators into the sum of an unlimited number of production chains (or paths), and can be used to analyze the contribution rate of different paths.

Structural path analysis (SPA) is an input-output technique that is used to trace and scan an entire supply and sales chain web in order to extract and rank those chains that are most important in terms of the environmental impact that they enable.

Within SPA, the term “path” is used as a synonym for “chain”. Similarly, intermediate transactions in a chain are referred to as “nodes” or sometimes “vertices”. Finally, the number of intermediate actors in a chain is called the “tier” or “order” of that chain, or path. For example a path with 2 intermediate nodes “originates in tier 3”, or “is of 3rd order”.

Construction

The direct influence of i on j transmitted through an elementary path is the change in income (or production) ofjinduced by a unitary change in i, the income (or the production) of all other poles except those along the selected elementary path remaining constant.

Total Influence. In most structures, there exists a multitude of interactions among poles. In particular, poles along any elementary path are likely to be linked to other poles and other paths forming circuits which amplify in a complex way, the direct influence of that same elementary path. To capture these indirect effects Lantner (I974) introduced the concept of total influence.

Usage

In economics, it is mainly used to describe the complexity of the economy, and in the energy environment, it is mainly used to analyze the path of different influencing factors.

References

  1. Conceptualising environmental responsibility, Manfred Lenzen, Joy Murray, 2010