Economic interconnections: Hypothetical Extraction Method in Input-Output Analysis (12:00 UTC)
Session Organiser: Edgar Hertwich
Institution: Norwegian University of Science and Technology (NTNU)
Location/Local Time: Trondheim, Norway (1 - 2pm)
Abstract:
It has long been the desire of industrial ecologists to understand the interconnectedness of the economy. While methods such as production layer, structural path, and network analysis provide insights into individual trades, the systematic economy-wide interconnectedness requires different approaches. The Hypothetical Extraction Method (HEM), also called supply chain impact method within industrial ecology, is able to systematically investigate this interconnectedness. It can calculate how much of a product’s price or footprint is due to the input provided by specified other sectors, anywhere in the production network. It can determine how much of an industry’s inputs come from a specific production process, which is why it has been used for disaster impact analysis in regional economics. Here we provide a short introduction to the method and provide several examples of how it is used in ongoing research.
Session Details:
00 Welcome
02 Edgar Hertwich (NTNU): Hypothetical Extraction in Industrial Ecology
15 Max Koslowski (NTNU): HEM recap
20 Hanspeter Wieland (BOKU): HEM for analysing global steel flows and other stock-building materials
27 Kajwan Rasul (XIO SA): HEM to construct the FABEXIO hybrid IO tables
35 Francis Barre (NILU): Indirect exposure to coastal flood risks in the Norwegian economy
42 Oskar Wood Hansen (UAB): The emission intensity of employment: implications for climate policy & public acceptability
50 Meng Jiang (NTNU): Petrochemicals in the global economy
57 Closing
Literature:
Linking hypothetical extraction, the accumulation of production factors, and the addition of value, https://doi.org/10.1111/jiec.13522
Water use in the Spanish economy: An input–output approach. https://doi.org/10.1016/S0921-8009(02)00183-0
Revealing the life cycle greenhouse gas emissions of materials: The Japanese case https://doi.org/10.1016/j.resconrec.2017.12.011
A new method for analyzing sustainability performance of global supply chains and its application to material resources. https://doi.org/10.1016/j.scitotenv.2019.04.434
A taxonomy of extractions. https://www.researchgate.net/profile/Michael-Lahr-3/publication/241497874_A_TAXONOMY_OF_EXTRACTIONS/links/0c960528f5d8499b81000000/A-TAXONOMY-OF-EXTRACTIONS.pdf
Industrial CO2 emissions in China based on the hypothetical extraction method: Linkage analysis. https://doi.org/10.1016/j.enpol.2013.06.045
Decomposition analysis of the carbon footprint of primary metals. https://doi.org/10.1021/acs.est.2c05857
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