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Identifying the Role of Final Consumption in Structural Path Analysis: An Application to Water Uses

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  • Llop Llop, Maria
  • Ponce Alifonso, Xavier
Abstract
The complexity of the connexions within an economic system can only be reliably reflected in academic research if powerful methods are used. Researchers have used Structural Path Analysis (SPA) to capture not only the linkages within the production system but also the propagation of the effects into different channels of impacts. However, the SPA literature has restricted itself to showing the relations among sectors of production, while the connections between these sectors and final consumption have attracted little attention. In order to consider the complete set of channels involved, in this paper we propose a structural path method that endogenously incorporates not only sectors of production but also the final consumption of the economy. The empirical application comprises water usages, and analyses the dissemination of exogenous impacts into various channels of water consumption. The results show that the responsibility for water stress is imputed to different sectors and depends on the hypothesis used for the role played by final consumption in the model. This highlights the importance of consumers’ decisions in the determination of ecological impacts. Keywords: Input-Output Analysis, Structural Path Analysis, Final Consumption, Water uses.

Suggested Citation

  • Llop Llop, Maria & Ponce Alifonso, Xavier, 2014. "Identifying the Role of Final Consumption in Structural Path Analysis: An Application to Water Uses," Working Papers 2072/237598, Universitat Rovira i Virgili, Department of Economics.
    • Handle: RePEc:urv:wpaper:2072/237598
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    13. Guan, Shihui & Han, Mengyao & Wu, Xiaofang & Guan, ChengHe & Zhang, Bo, 2019. "Exploring energy-water-land nexus in national supply chains: China 2012," Energy, Elsevier, vol. 185(C), pages 1225-1234.
    14. Xu, Dongxiao & Zhang, Yan & Chen, Bin & Bai, Junhong & Liu, Gengyuan & Zhang, Boyu, 2022. "Identifying the critical paths and sectors for carbon transfers driven by global consumption in 2015," Applied Energy, Elsevier, vol. 306(PB).
    15. Chang K. Seung & Do-Hoon Kim, 2020. "Examining Supply Chain for Seafood Industries Using Structural Path Analysis," Sustainability, MDPI, vol. 12(5), pages 1-20, March.
    16. Zhang, Bo & Qu, Xue & Meng, Jing & Sun, Xudong, 2017. "Identifying primary energy requirements in structural path analysis: A case study of China 2012," Applied Energy, Elsevier, vol. 191(C), pages 425-435.
    17. Wang, Zhen & Wei, Liyuan & Niu, Beibei & Liu, Yong & Bin, Guoshu, 2017. "Controlling embedded carbon emissions of sectors along the supply chains: A perspective of the power-of-pull approach," Applied Energy, Elsevier, vol. 206(C), pages 1544-1551.
    18. Shi, Jianglan & Li, Chao & Li, Huajiao, 2022. "Energy consumption in China's ICT sectors: From the embodied energy perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 160(C).
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    20. Alexandros Gkatsikos & Konstadinos Mattas & Efstratios Loizou & Dimitrios Psaltopoulos, 2022. "The Neglected Water Rebound Effect of Income and Employment Growth," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 36(1), pages 379-398, January.
    21. Teng, Yuqiang & Lin, Boqiang, 2024. "The energy-saving effect of industrial chain synergistic division: Evidence from China's industrial chain," Energy Policy, Elsevier, vol. 185(C).
    22. Stefan Giljum & Hanspeter Wieland & Stephan Lutter & Martin Bruckner & Richard Wood & Arnold Tukker & Konstantin Stadler, 2016. "Identifying priority areas for European resource policies: a MRIO-based material footprint assessment," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-24, December.
    23. Wang, Saige & Cao, Tao & Chen, Bin, 2021. "Identifying critical sectors and supply chain paths for virtual water and energy-related water trade in China," Applied Energy, Elsevier, vol. 299(C).

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