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Analysis of Energy-Economy Linkages Using a Social Accounting Matrix

  • Tejal Kanitkar
Chapter
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Part of the SpringerBriefs in Environmental Science book series (BRIEFSENVIRONMENTAL)

Abstract

The third component of the integrated modeling framework, discussed in this chapter, is the input-output analysis, which provides insights into key economic variables that are affected due to different energy policy decisions. In the climate change debate, developing countries have always voiced concerns over taking mitigation action as they believe that this will affect the pace and way in which they can develop and address the issues of poverty alleviation within their countries. On the other hand developed countries have also been averse to undertaking mitigation action citing a loss of competitive advantage if they are to be the sole contributors to the mitigation effort. In both arguments, the trade-offs associated with the development versus environment debate are implicit. However, an analysis of the nature of the trade-offs or their quantification has been done in very few studies. For India, most modeling studies are undertaken with a view to produce projections for the future which will be useful in determining India’s energy requirements, emissions, and economic growth. Such projections, however useful, cannot be taken as accurate projections of the future as they are but one possible representation out of a range of possible futures. Every change in policy leads to an impact, large or small, on all the sectors of the economy, and this leads to an impact on energy and emissions. The best that is possible therefore is to evaluate a range of scenarios for a range of policy alternatives and, instead of focusing on providing a single predictive result, focus on evaluating the interlinkages in the economy and the potential impacts of certain decisions on key economic and energy parameters. The work presented in this chapter undertakes such an analysis of “what ifs” using an extended input-output matrix, i.e., a social accounting matrix (SAM).

Keywords

Social accounting matrix Input-output models Energy equity Energy-economy linkages Structural decomposition 

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Copyright information

© The Author(s), under exclusive licence to Springer Nature Switzerland AG 2020

Authors and Affiliations

  • Tejal Kanitkar
    • 1
  1. 1.School of Natural Sciences and EngineeringNational Institute of Advanced StudiesBengaluruIndia

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