Structural Decomposition Analysis of Physical Flows in the Economy

• Published in: Environmental & resource economics Vol. 23; no. 3; pp. 357 - 378
• Main Authors: Hoekstra, Rutger, van den Bergh, Jeroen C.J.M.
• Format: Journal Article
• Language: English
• Published: Dordrecht European Association of Environmental and Resource Economists 01.11.2002; Springer Nature B.V
• Series: Environmental & Resource Economics
• Subjects: Analysis; Carbon dioxide; CO2-emissions; Comparative analysis; comparative static analysis; Decomposition; Economic structure; Economic theory; Economics; Emissions; Empirical research; Energy consumption; energy use; Energy utilization; Environment; environmental analysis; Environmental impact; Extraction; Historical account; Input output analysis; material flows; Methods; physical flows; Policy making; Pollutants; Q1; Reviews; Structural change; Technological change; Value added
• ISSN: 0924-6460; 1573-1502
• DOI: 10.1023/A:1021234216845

Many environmental problems can be attributedto the extraction and emissions of physicalsubstances. Increasing our understanding of theeconomic and technological driving forcesbehind these physical flows can contribute tosolving the environmental problems related tothem. The input-output framework is a usefulsetting in which to integrate detailedinformation about economic structure andphysical flows. In this article a specificmethod in input-output analysis is reviewed,namely Structural Decomposition Analysis (SDA).It is based on comparative static analysis,which decomposes historical changes of a policyvariable into determinant effects. SDA has beenapplied, for example, to analyze the demand andtechnological driving forces of energy use,CO2-emissions and various other pollutantsand resources. This article examines thetheoretical aspects of structuraldecomposition, in particular those concerningphysical flows and environmental issues.Furthermore, the article includes an extensivesurvey of empirical studies. Copyright Kluwer Academic Publishers 2002