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Über dieses Buch

Industrial ecology (IE) is a rapidly growing scienti?c discipline that is concerned with the sustainability of industrial systems under explicit consideration of its int- dependence with natural systems. In recent years, there has been an ever-increasing awareness about the applicability of Input-Output Analysis (IOA) to IE, in particular to LCA (life cycle assessment) and MFA (material ?ow analysis). This is witnessed in the growing number of papers at ISIE (International Society for Industrial Ec- ogy) conferences, which use IOA, and also by the installment of subject editors on IOA in the International Journal of Life Cycle Assessment. It can be said that IE has become a major ?eld of application for IOA. The broadening of users of IOA from various backgrounds implies a need for a self-contained textbook on IOA that can meet the needs of students and practitioners without compromising on basic c- cepts and the latest developments. This book was written with the aim of ?lling this need, and is primarily addressed to students and practitioners of IE. As the title suggests, the core contents of the book have grown out of our research in IOA of waste management issues over the last decade. We have been fascinated by the versatile nature of IOA with regard to various technical issues of waste m- agement in particular, and to IE in general. For us (both economists by training), IOA has turned out to be extremely useful in establishing productive communi- tion with scientists and engineers interested in IE.



Input-Output Analysis

1. Introduction

This chapter gives the aim of the book, and an outline of its contents as well. With its explicit consideration of the physical flows of waste and the activity of waste management (including the recycling of waste materials), the Waste Input-Output model (WIO) has made it possible to take into account the entire life cycle phases of a product within the framework of (hybrid) IOA. This is a book on the concepts and application of WIO for students and practitioners of IE. In order to make it a self-contained textbook on IOA, the first part is devoted to the standard IOA, while the second part is reserved for issues which are closely related to WIO including the environmental extensions of IOA.

2. Basics of Input-Output Analysis

This chapter deals with the basic concepts of input-output analysis (IOA) such as the representation of a production process in terms of the flow of inputs and outputs, the input and output coefficients, the Leontief inverse coefficients, the productive conditions, the Leontief quantity- and price models, as well as input-output tables. First we consider the simplest case of an economy consisting of a single producing sector. While this case may appear odd with the multi-sectoral feature of IOA, we find this case useful to help readers become familiar with the basic concepts of IOA without being unduly bothered by mathematics: simple arithmetic suffices. The multi-sectoral feature of IOA is then considered for the case of an economy with two producing sectors. The Leontief quantity- and price models are also derived, which involve systems of simultaneous equations. Rewriting these systems of simultaneous equations in terms of matrix algebra yields the basic results of IOA that can be applied to the general case of n producing sectors.

3. Extensions of IOA

The basic IO model introduced in Chapter 2 needs some extensions before it can effectively be put to a practical application. This applies particularly to regional extensions and the treatment of by-product. Regional extensions are necessary to account for the plain fact that economies are connected to each other thorough the trans boundary flows of goods and services, just as the sectors of an economy are connected to each other through the flow of goods and services. Waste and emissions, which are objects of a great concern in industrial ecology, are typical examples of by-product. Alternative ways to accounting for it in IOA are discussed, including one based on the make and use matrices. In Chapter 2 a brief mention was made of the possibility of representing the household consumption just like any other production process. Section 3.4 deals with the closing of the IO model by making endogenous the final demand sectors including not only household consumption but capital formation as well. Other topics to be dealt with include the introduction of inequalities to allow for the presence of resource constraints, the identification of a fundamental structure of production based on some rearrangements of sector orderings, and a variant of IOA model called Ghosh model.

4. Microeconomic Foundations

This chapter provides some basics of microeconomics that are closely related to IOA. First, some basic concepts of great relevance to IOA in microeconomics, such as the concept of production- and cost functions, will be discussed. When it comes to practical application, general concepts need to be specified in order to be quantitatively implemented to real data. Issues related to the specification of technology in microeconomics constitute the second topic of this chapter. Some remarks on CGE (the Computable General Equilibrium model) with regard to its specification of technology will also be made. Finally, the microeconomic characteristics of IOA will be derived.

Waste Input-Output Analysis

5. Basics of WIO

The purpose of this chapter is to introduce the basic concepts of Waste Input-Output (WIO) tables and the model (Nakamura [37, 38]). The WIO is a variant of environmental Input-Output (EIO) models, and focuses on issues of waste management (waste treatment and recycling). Familiarity with major EIO models is useful for a proper understanding of the main features of WIO. The first section of this chapter gives a brief review of EIO models from rather broad areas, which include economy–environment (ecology) IO tables and models, IO-based energy analysis, and IO models of emissions. The review in the second section is focused on EIO models that deal with pollution (waste) and its abatement (treatment), which include the seminal work of Leontief [28], and its extension by Duchin, as well as the development of IOTs incorporating waste flows (the Dutch NAMEA and German PIOT). Section 5.3 introduces the concepts of WIO table and its modeling for analytical purposes (further details of WIO model will be dealt with in the next chapter).

6. WIO Analysis

This chapter is concerned with application of the WIO model to real data, the basic structure of which was shown in Chapter 5, and the derivation of the WIO cost-price model as well. First, as a real example of WIO table, a WIO table for a small city in northern Japan is shown, which is characterized by ambitious management programs of municipal solid waste (MSW) with a rate of recycling around 70%. Secondly, large scale WIO tables for Japan with 50 to about 400 endogenous sectors with dozens of waste types are introduced, and the results of some applications based on the WIO quantity model are shown. Also dealt with is the issue of adjusting for the imports of waste in WIO, which were not touched upon in Chapter 5. A distinguishing feature of a waste treatment process consists in its dependence on the chemical properties of the incoming waste. The third topic of this chapter deals with the consideration of this “dynamic nature of a waste treatment process” in WIO by use of engineering models. Fourth, the cost and price counterpart of the WIO quantity model, the WIO price model, is derived, and numerical examples are given for its illustration. The contents of this chapter make use of Nakamura [8], Nakamura and Kondo [10,11].

7. Application of WIO to Industrial Ecology

This chapter is concerned with the application of WIO to major tools of IE such as LCA, MFA, LCC (life cycle costing), and its further extensions in various fields of IE. Introducing the use phase, which has remained unconsidered in the previous chapters, into the WIO quantity model yields the WIO-LCA model, which can be used for life cycle inventory analysis. In a similar fashion, its cost counterpart, the WIO-LCC model, is also obtained, which can be used for environmental LCC. A new method of MFA, WIO-MFA, is presented, which can consider the physical flows of many materials/substances simultaneously. This method can also be used to transform a monetary IO table into a physical table of the flow of materials. Extensions of WIO to regional models and a linear programming model are also dealt with.


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