Linkages of the energy sector in the Greek economy: an input-output approach

Abstract

Purpose -The purpose of this paper is to reveal the dynamics of the Greek energy sector. As energy sectors contribute substantially to a national economy and stimulate national output and employment, it is important to identify their upward and downward linkages and interrelations with the other sectors of the economy. Design/methodology/approach -To do this and capture such relations in the economy, a general equilibrium model is used. In specific, input-output (I-O) analysis is used and a model is specifically built for the Greek economy to examine in detail the energy sectors. Multiplier and linkage analysis is performed to assess their dynamics in terms of output, household income and employment. Findings -Results indicate that the three energy sectors' multipliers and elasticities, though are not ranking in the first places, are enough high indicating their strong linkages in the economy and their potentials to enhance the economy's total output, employment and household income. Research limitations/implications -Further disaggregation of the economy's energy sectors is needed to make clearer the separation among renewable and non-renewable sector, to identify and compare the dynamics and contribution of each category in the economy. Additionally, an environmental I-O model would indicate consequences on the environment and not just pure economic benefits. Practical implications -Through the analysis, it can be seen that energy sectors and secondary energy products have the ability to drive a country's economic activity through exports and intersectoral linkages, even if it is not a crude petroleum producing economy. Thus, knowledge of the economic impacts of such sectors is a valuable information. Originality/value -The current study provides significant information of an economy's energy sectors regarding their ability to support economic activity and employment. A general equilibrium model is used, examining the whole economy, to assess direct and indirect interrelationships. IJESM 9,3 others, at Richardson (1972) and Miller and Blair (2009). 5. The mathematical notation and basic equations of the model are presented in the appendix.6. For a terminology of I-O multipliers, see Miller and Blair (2009).

Assessing the Potentials of Bioeconomy Sectors in Poland Employing Input-Output Modeling

“…The representation of the I-O system in mathematical form [16,17] is based on three matrices: the first and basic one is the transactions matrix that is mentioned above. Following basic matrix manipulations, the second matrix, the direct requirements, is calculated so that it reports the direct I-O coefficients.…”

“…The abovementioned model is the so-called demand driven and is used extensively in the literature compared to the supply-driven; a detailed presentation of the above demand driven model can be found among others in [16,17]. The calculation of the Leontief inverse offers the ability to extend further the modeling procedure in I-O analysis by calculating various I-O linkage coefficients that reveal the potentials of each sector in an economy.…”

“…Multipliers provide an adequate tool that can assess with relative accuracy the impacts of any exogenous final demand change in the economy's income, output and employment levels. A detailed analysis for the calculation of the I-O multipliers is presented in Miller and Blair and Loizou et al [16,17].…”

“…In order to do that, the mixed bioeconomy sectors, as they do not appear as separate sectors in the published I-O table, are identified and created to weigh their importance separately and assess their direct and indirect impacts in the economy. I-O modeling is among the models that were used to estimate the impacts of bioeconomy [20] and especially bioenergy projects or environmental problems on an economy [17,21,22].…”

The Impacts Analysis of Creative-Products Export on the Economy

“…Applying the Input-Output (I-O) model analysis, this study explains the economic impacts of the increase in the creative industry's final demand, especially exports in fashion and craft sectors towards the economy through the increase of valueadded, household income and labor based on linkage analysis, multiplier analysis, and impact analysis. Previous studies often applied the Input-output approach to analyze the impacts of the increasing final demand towards value added, income and economic growth (Xu et al, 2011;Loizou et al, 2015). The research is expected to be a reference and information for studies related to the impacts of creative industry's final demand that will be done in the future.…”