Disaggregating Input-Output Models

Very few durable goods are recovered at the end of their useful lives. However, this situation could reverse with the development of a stronger remanufacturing industry in the economy. This paper evaluates the impact of remanufacturing in a hypothetical situation where remanufacturing holds a significant share of the economy, presently dominated by the original manufacturing industries. It would have direct impacts on the demand for several inputs. We adapt the inter-industry input-output framework with the development of a methodology to consider these changes. Subsequently, we apply the model to the 30-sector aggregation of the French input-output national data to illustrate the nethod and to evaluate the impact that remanufacturing may have on the economy. The analysis assumes that remanufacturing sectors substitute labor and transport services for the usual inputs such as raw materials and semi-finished goods. We find that remanufacturing may satisfy the same final demand from all sectors requiring fewer intermediate resources, with proportionally higher demand of labor.

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“…A number of researchers have worked on the problem of disaggregating input-output tables. The work by Wolsky (1984) deals precisely with it.…”

Section: Disaggregating Input-output Tablesmentioning

confidence: 99%

The impact of remanufacturing in the economy

Ferrer

Ayres

2000

Ecological Economics

122

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show abstract

“…First, the structure of the disaggregation of the electricity sector is described, followed by the methodology showing how to carry each step of that disaggregation. We also describe Wolsky's (1984) disaggregation based on the national output weight factors (i.e. disaggregation without regional weighting), and then explain our technique for deriving the regionally weighted disaggregated I-O This level of disaggregation captures the major electricity production options with different CO 2 emissions per unit output.…”

Section: Paper Structurementioning

confidence: 99%

“…This could be power purchased by utility companies utilities to cover supply shortfalls. We disaggregate this value to power purchases among the nine new sectors, including T&D. We use the assumption made by Marriot (2007) as well as Wolsky (1984): the intra-industry value is split among each entry in the new intra-matrix by multiplication with the row and column weight factor.…”

Section: Construction Of the Intra Matrixmentioning

confidence: 99%

“…He thus recommends disaggregating I-O tables whenever possible to do so. In a previous paper, we picked up on this conclusion and extended Wolsky's approach (Wolsky, 1984) by showing how a sector can be disaggregated into an arbitrary number of new sectors when the total outputs of the new sectors is the only available information . In Wolsky's approach (Wolsky, 1984), output weights are formed using the output ratio of the new sectors in relation to the aggregated sector they originate from.…”

Section: Introductionmentioning

confidence: 99%

“…In a previous paper, we picked up on this conclusion and extended Wolsky's approach (Wolsky, 1984) by showing how a sector can be disaggregated into an arbitrary number of new sectors when the total outputs of the new sectors is the only available information . In Wolsky's approach (Wolsky, 1984), output weights are formed using the output ratio of the new sectors in relation to the aggregated sector they originate from. The methodology was illustrated by disaggregating the electricity sector of China into three electricity generation sectors, and we showed how the output weights are used to form an initial guess for the disaggregation.…”

Section: Introductionmentioning

confidence: 99%

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