PHYS5033 Environmental Footprints and IO Analysis
Homework week 1(Due:September 12,2025)
Build your own imaginary input-output table for an economic system of your choice.
18 industry sector input-output table
Make sure that your table features:
·18 intermediate demand(industry)sectors
·3 value-added(primary inputs)entities(Households,Government,Imports)
·3 final demand entities(Households,Government,Exports)
·Add numbers to your input-output table.For adding numbers,you can refer to published input-output
tables that are available online.If you are making a dummy input-output table,the numbers can be made- up as well.The important aspect is that your structure should be correct!
The input-output system needs to be presented in monetary units-it is up to you which currency you want your input-output table to be in,but you must include the relevant units when presenting the table.
EXPLANATION: Explain the various components of an input-output table-intermediate demand,final demand and value-added matrix(about 150 words).
Homework week 2(Due:September 12,2025)
Matrix operations and balancing of your input-output table
In week 1 you were asked to build an input-output table.For this homework,you will be doing the following tasks using your input-output table:
·Create a new sheet in your Excel fle and copy your 18-sector input-output table into this new Excel sheet.
·Add row and column summation vectors that will be used to calculate the row sum and column sum of each of the matrices in your input-output system.
·Use matrix multiplication techniques and the row and column summation vectors to calculate your total output and total input vector in the Excel sheet.
·Is your table balanced?If not,alter the values in your input-output system to balance the table. EXPLANATION:Explain the concept of balancing for input-output tables(about 150 words).
Homework week 3(Due:September 12,2025)
Decomposing prices in IO tables
Using your 18-sector IO table,choose 1 sector in your table.Choose a product that is an output of that sector and allocate that product a market price (this can be the actual market price of that product,oryou can make one up).
Create a table for your product showing how the market price is broken down into:
1.Producer price
2.Basic price
3.Receivable
You can make any assumptions you want on the value of the components used for your calculations (e.g.tax rates,margins,subsidies),just make sure that you note what those assumptions are.Make sure that the workings for your calculations are available,ideally by using equations in Excel.
EXPLANATION:Explain the concept of valuation in input-output tables(150 words).Comment on why different countries have their own input-output tables(about 150 words).
Homework week 4(Due:September 12,2025)
Use your balanced input-output table(18 industry sectors,3 value-added entities and 3 final demand entities) to complete the following:
1.Construct the A-Matrix for your Input-Output System using the matrix techniques discussed in the lecture.
2.Construct the L-Matrix foryour Input-Output System using the matrix techniques discussed in the lecture.
3.Use the fundamental Input-output equation to calculate the output required to satisfy each of the different final demand vectors in your input-output table.
For example,for the final demand vector of household consumption(let's call it yHH)calculate xHH using the fundamental input-output formula that was presented in the lecture.Carry out this step forall 3 fnal demand vectors.
4.Now that you have the output vectors required to satisfy the demand for each of the final demand vectors, add all these output vectors.Does the result of this addition equal the total output x of your IO system?
EXPLANATION:Explain the concept of the direct requirements matrix and total requirements matrix in simple words(100 words).Why is your answer in Q4 equal to the total output(100 words)?
Homework week 5(Due:September 12,2025)
For your 18-sector input-output table,complete the following:
Use the Satellite Construction process outlined in the lecture to construct a Satellite matrix with three indicators(at least one environmental,one social and one economic)foryour Input-Output table.
Ensure that the initial ('raw')sectors for your indicators are different from the sectors in your IO table.Build appropriate concordance matrices and use the total output of your IO table as the proxy to obtain a map. Using the procedure outlined in the lecture,construct a satellite matrix for your IO table.
For the economic indicator,you can simply extract the first row of the value-added matrix(Households)and use that row as an economic indicator.If you choose this approach,you do not need to follow the steps for constructing the Q-row,as your economic indicator will already be structured in a way that matches the sectors in your IO table.
Make sure that you include labels and units for all indicators in your satellite block.
EXPLANATION:How can you include data on different indicators in one satellite block(100 words)?Let's imagine there are two satellite accounts with data on greenhouse gas emissions and employment(one satellite account for Country A and another one for Country B).Would the satellite account data for these two countries be the same?Why?Why not?(100 words)