Technological change for a sustainable economy from an input-output framework
The objective of this paper is to analyze the electricity sector and the implications of an increase of the implementation of the electricity self-production and self-consumption.
To this end, we use the supply and use tables (SUTs), since we can see that the symmetric input-output tables (SIOT) obtained using the main four models (models A, B, C, and D) proposed by Eurostat (2008) can depict really different results when we implement a change in SUTs. We see this by the implementation of a technological change in SUTs, which is related to an energy production reallocation (in this first step environmental results are not analyze because the sector is not disaggregated).
Thus, to better study the effects of electricity self-production and self-consumption, we analyze it with the SUTs directly. With the objective of better seeing the effects on environment, we disaggregate the energy sector and product in SUTs into seven generation technologies -distinguishing between renewable and non-renewable sources -, transmission, distribution, commercialization, and related activities. Then, with this, to see the effects on the multipliers and on the energy intensities, we implement the model proposed by Lenzen and Rueda-Cantuche (2012).
To go further in the analysis, we develop a disaggregated Computable General Equilibrium (CGE) model to see the effects of different fiscal measures in favor of green electricity sources with the current electricity self-production and with an increase of its implementation.
Beyond the empirical results of the paper, we contribute with a methodology with a high potential to analyze technological change - specifically electricity self-production and self-consumption - in SUTs and its effects when implementing fiscal policies.