On a scientific as well as a political level, there is wide consensus today that the concept of sustainable development requires integrated approaches to illustrate the interactions between economic, social and environmental concerns. Input-output analysis is regarded as an appropriate framework to provide a comprehensive picture of these linkages as it allows combining bio-physical and social data with economic (monetary) input-output models.
The interrelations between the economic and ecological system affect the flow of material inputs and outputs in many forms. Environmental degradation depends considerably on input quantities, which are taken from and transferred again to the environment in form of emissions and wastes. For the description of these relationships, the concepts of “industrial metabolism” and “societal metabolism” are important. These terms refer to the exchange of materials and energy between ecological and socio-economic systems. According to these concepts physical indicators can be differentiated with respect to input and output indicators.
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Stocker, A., Luptačik, M. (2009). Modelling Sustainability of the Austrian Economy with Input-Output Analysis. In: Suh, S. (eds) Handbook of Input-Output Economics in Industrial Ecology. Eco-Efficiency in Industry and Science, vol 23. Springer, Dordrecht. https://doi.org/10.1007/978-1-4020-5737-3_34
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