Environmental-Economic Models

Environmental-economic models provide a comprehensive economic framework that is extremely useful in assessing environmental impacts associated with changes in economic activity.

Several extensions to the standard I-O model are included in the environmental-economic models developed by EconSearch, namely:

  • water consumption;
  • net energy consumption; and
  • net greenhouse gas (GHG) emissions.
Water

The 18 sector versions of the I-O models for SA and the SA Government regions have been extended to include estimates of water consumption. Water consumption is a measure of gross water consumption by industry sector and households. Estimates include all sources of water (i.e. self-extracted groundwater and surface water, distributed water, re-use, etc.), except direct water extraction by commercial forestry. Calculation of water consumption multipliers is made possible by the inclusion of a water consumption row (specified in gigalitres) in the I-O transactions table. 

Energy 

The 18 sector versions of the I-O models for SA and the SA Government regions have been extended to include estimates of net energy consumption. Net energy consumption or energy balance is a measure of consumption of energy minus production of energy by industry sector and households. Estimates include all forms of energy (i.e. electricity, coal, gas, petroleum, etc.). Calculation of net energy consumption multipliers is made possible by the inclusion of an energy balance row (specified in peta joules) in the I-O transactions table.

Greenhouse Gas

The 18 sector versions of the I-O models for SA and the SA Government regions have been extended to include estimates of net greenhouse gas (GHG) emissions. Net GHG emissions are a measure of GHG sources by energy end user (industry sector and households) minus GHG sinks. Calculation of net GHG emissions multipliers is made possible by the inclusion of a net GHG emissions row (specified in gigagrams (‘000 tonnes)) in the I-O transactions table.

View Economic Modelling work undertaken by Econsearch.