Energy Input-Output Analysis

Definition

Energy Input-Output Analysis is a type of Generalized Input-Output Analysis that explicity accounts for the energy cost of goods and services. The simplest and most straightforward of the energy extensions to the Leontief framework is to explicitly account for energy use by simply adding a set of linear energy coefficients that define energy use per a monetary unit's worth of output of industrial sectors.

Usage

In general, energy input–output typically determines the total amount of energy required to deliver a product to final demand, both directly as the energy consumed by an industry’s production process and indirectly as the energy embodied in that indus- try’s inputs.

Energy input–output formulations should include the condition that the total primary energy intensity of a product should equal the total secondary energy intensity of the product plus any amount of energy lost in energy conversion or used for some other purpose. Such conditions are refered as Energy Conservation Conditions.

Expressing transactions in hybrid units is accomplished by taking the original interindustry transactions matrix, Z, and replacing the energy rows with the corresponding rows in the energy flows matrix,

Formula

We are interested in measuring energy flows in physical units, so presume we have an analogous identity given by Ei + q = g, where E is the matrix of energy flows from energy-producing sectors to all sectors as consumers of energy, q is the vector of energy deliveries to final demand4 and g is the vector of total energy consumption, all once again measured in physical units.

If there are n sectors in the economy, m of which are energy sectors, then Z will be of dimension n × n, but E will be of dimension m × n. Similarly, while f and x are of dimension n × 1, q and g will be of dimension m ×