Input-output technology assumptions and the energy requirements of commodities

Abstract Since Stone's original work input-output methodology has taken a great step forward in standardizing the procedures employed for the derivation of monetary input-output tables, which in turn, e.g., are used to measure the energy requirements of commodities. In this methodology there exist two basic (mechanical) ways, or ‘technology’ assumptions, by which such measures under circumstances of multiple production can be defined. The physical effects of these assumptions on the measures obtained, however, have not yet been analysed sufficiently. This paper presents such an analysis on the basis of technological conditions of a quite general kind, including joint production, and shows that even then these two measures of energy requirements will give rise to economically well-grounded expressions, i.e., do not represent measurement without theory. The expressions obtained will allow us to prove several assertions within their respective ranges of applicability, which complement each other to some extent.