input-output – Regional Science Inquiry

Joshua C. HALL

Milan Pusker Dean, John Chambers College of Business and Economics West Virginia University, West Virginia, United States of America

Joshua.Hall@mail.wvu.edu

Abstract

In the United States, regional scientists and economists frequently employ IMPLAN, a proprietary input-output (I-O) software, for assessing the economic ramifications of diverse interventions on the local economy. IMPLAN has recently incorporated the Environmental Protection Agency’s (EPA) Environmentally Extended Input-Output (EEIO) modeling as an optional extension within their subscription service. In this paper, we compare coal vs. solar production scenarios in Ohio (a state in the United States) as a case study to illustrate the seamless integration of EEIO modeling with traditional I-O modeling, showcasing its enhanced capabilities for evaluating economic and environmental impacts. In the case of Ohio, we found that the state’s plans to increase solar energy capacity and decrease coal energy capacity have a net positive impact on its economy when considering both economic and environmental aspects.

Keywords: Input-output, coal, solar, environmental impact

JEL classification: C67, R15, E01, P18

pp. 99-106

Gustavo FERRO

Associate Professor and Independent Researcher, Universidad del CEMA (UCEMA) and CONICET. gaf97@ucema.edu.ar

gferro05@yahoo.com.ar.

M. Priscila RAMOS

Adjunct Professor and Adjunct Researcher, Universidad de Buenos Aires. Facultad de Ciencias Económicas. CONICET-Universidad de Buenos Aires. Instituto Interdisciplinario de Economía Política de Buenos Aires.

mpramos@economicas.uba.ar

Carlos A. ROMERO

Adjunct Professor and Researcher at CONICET-Universidad de Buenos Aires. Instituto Interdisciplinario de Economía Política (IIEP-BAIRES).

cromero@economicas.uba.ar

Abstract

Biogas is generated from substrates derived from agriculture and cattle, agroindustry (slaughterhouses, flour, and sugar mills), urban solid waste, and sewerage treatment. This study measures the current and potential production and gross employment in the biogas value chain in three southern states in Brazil (Paraná, Santa Catarina, and Rio Grande do Sul). We offer two contributions: first, an input-output methodology to focus on the problem of disparate or nonexistent sectoral information, both in monetary and physical units; second, the quantitative results of output and gross job creation derived from shocks at the regional level. We calibrate input-output matrices of the three states with compatibilized sector entries, opening new ones for those not included in official statistics (derived from specific surveys). Once the baseline has been established, we consider three scenarios: demand-pull that achieves full capacity utilization, supply push that addresses new investments in the sector assuming guaranteed demand, and full utilization of substrates supply for biogas production. Employment multipliers are in line with literature on comparative activities found elsewhere in the world. Our findings support the hypothesis of the relatively high labor intensity in the biogas industry.

Keywords: biogas, Brazil, input-output, employment

JEL classification: Q42, R15

pp. 21-37

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Tuyen PHAM

Assistant Professor of Research, Voinovich School of Leadership and Public Service Ohio University, Athens Ohio, United States of America

tuyen.pham@ohio.edu

G. Jason JOLLEY

Professor of Rural Economic Development, Voinovich School of Leadership and Public Service Ohio University, Athens Ohio, United States of America

jolleyg1@ohio.edu

Paul VALENTINE

Assistant Professor of Instruction, Voinovich School of Leadership and Public Service Ohio University, Athens Ohio, United States of America

valentine@ohio.edu