Coupling input–output analysis with multiobjective linear programming models for the study of economy–energy–environment–social (E3S) trade-offs: a review

The study of the interactions between the economy (at national, global and local levels), the energy sector and the corresponding impacts on the environment inherently involves multiple axes of evaluation of distinct policies. Input–output (IO) analysis offers a consistent framework for developing multiobjective models for assessing the trade-offs associated with those policies. The analytical framework of IO analysis enables to model the interactions between the whole economy and the energy sector, thus identifying the energy required for the provision of goods and services in an economy and also quantifying the corresponding pollutant emissions. This paper is aimed at reviewing the different modelling approaches available in the scientific literature based on coupling IO analysis with multiobjective models, which can be particularly useful for policy makers to assess the trade-offs between the economy–energy–environment–social pillars of sustainable development, particularly relevant in the current sluggish economic context.

[1]  Carla Oliveira,et al.  An Input-output Model for Decision Support in Energy-economy Planning - a Multiobjective Interactive Approach , 2002 .

[2]  Sangwon Suh,et al.  Functions, commodities and environmental impacts in an ecological–economic model , 2004 .

[3]  Tser-Yieth Chen,et al.  The impact of mitigating CO2 emissions on Taiwan's economy , 2001 .

[4]  Bruno Urli,et al.  PROMISE/scenarios: An interactive method for multiobjective stochastic linear programming under partial uncertainty , 2004, Eur. J. Oper. Res..

[5]  Carlos Henggeler Antunes,et al.  Multiple objective linear programming models with interval coefficients - an illustrated overview , 2007, Eur. J. Oper. Res..

[6]  S. Suh Handbook of input-output economics in industrial ecology , 2009 .

[7]  Carlos Henggeler Antunes,et al.  How many jobs can the RES-E sectors generate in the Portuguese context? , 2013 .

[8]  Mikulás Luptácik,et al.  An environmental input-output model with multiple criteria , 1994, Ann. Oper. Res..

[9]  Maurizio Ciaschini,et al.  Input-Output Analysis: Current Developments , 2011 .

[10]  James J. Buckley,et al.  Fuzzy input-output analysis , 1989 .

[11]  Matthias Ehrgott,et al.  Multiple criteria decision analysis: state of the art surveys , 2005 .

[12]  R. E. Wendell,et al.  The tolerance approach to sensitivity analysis of matrix coefficients in linear programming , 1989 .

[13]  Mikulás Luptácik,et al.  Efficiency analysis of a multisectoral economic system , 2010, Central Eur. J. Oper. Res..

[14]  João Clímaco,et al.  Implementation of a user-friendly software package-a guided tour of trimap , 1989 .

[15]  Albert Faber,et al.  Exploring Technology Scenarios with an Input-Output Model , 2004 .

[16]  Carlos Henggeler Antunes,et al.  An interactive method of tackling uncertainty in interval multiple objective linear programming , 2009 .

[17]  François Bousquet,et al.  Modelling with stakeholders , 2010, Environ. Model. Softw..

[18]  Wai Ming To,et al.  The causal relationship between electricity consumption and economic growth in a Gaming and Tourism Center: The case of Macao SAR, the People’s Republic of China , 2010, Energy.

[19]  Dimitrios Hristu-Varsakelis,et al.  OPTIMIZING PRODUCTION IN THE GREEK ECONOMY: EXPLORING THE INTERACTION BETWEEN GREENHOUSE GAS EMISSIONS AND SOLID WASTE VIA INPUT–OUTPUT ANALYSIS , 2012 .

[20]  Yoshiro Higano,et al.  Research on Environmental Tax to Affect the Economic Development and GHG Mitigation in Beijing, China , 2014 .

[21]  Yoshiro Higano,et al.  Research on Environmental Tax with Emphasis on Developing Renewable Energy in Beijing, China , 2014 .

[22]  J. Bergh Handbook of Environmental and Resource Economics , 1999 .

[23]  George J.Y. Hsu,et al.  Integrated planning for mitigating CO2 emissions in Taiwan: a multi-objective programming approach , 2000 .

[24]  G. West,et al.  A Stochastic Analysis of an Input-Output Model , 1986 .

[25]  R. S. Laundy,et al.  Multiple Criteria Optimisation: Theory, Computation and Application , 1989 .

[26]  C. Henggeler Antunes,et al.  Interactions of economic growth, energy consumption and the environment in the context of the crisis – A study with uncertain data , 2012 .

[27]  Mark F. J. Steel,et al.  Revised stochastic analysis of an input-output model , 1992 .

[28]  Dulce Coelho,et al.  A prospective analysis of the employment impacts of energy efficiency retrofit investment in Portugal by 2020 , 2014 .

[29]  M. Jerrell Interval Arithmetic for Input-output Models with Inexact Data , 1997 .

[30]  Shinichiro Nakamura,et al.  Waste input–output linear programming model with its application to eco-efficiency analysis , 2005 .

[31]  Ivan Dale U. Barilea,et al.  A fuzzy multi-regional input–output optimization model for biomass production and trade under resource and footprint constraints , 2012 .

[32]  T. K. Moulik,et al.  Energy planning in India: The relevance of regional planning for national policy , 1992 .

[33]  Robert U. Ayres,et al.  Evidence of causality between the quantity and quality of energy consumption and economic growth , 2010 .

[34]  PingSun Leung,et al.  The Trade-Off between Economic and Environmental Objectives in Japan's Power Sector* , 1991 .

[35]  Matthias Schroder,et al.  Input–Output Analysis , 2011 .

[36]  Y. Kondo,et al.  Waste Input-Output Analysis of Sustainable Consumption , 2003 .

[37]  Carlos Henggeler Antunes,et al.  A multi-objective input-output model to assess E4 impacts of building retrofitting measures to improve energy efficiency , 2015 .

[38]  Nesa L'abbe Wu,et al.  Linear programming and extensions , 1981 .

[39]  Klaus-Ole Vogstad,et al.  Input-Output Analysis and Linear Programming , 2009 .

[40]  José Ramón San Cristóbal,et al.  A goal programming model for environmental policy analysis: Application to Spain , 2012 .

[41]  W. Isard Ecologic-economic analysis for regional development : some initial explorations with particular reference to recreational resource use and environmental planning , 1973 .

[42]  Albert E. Steenge,et al.  Input-Output Analysis, Technology and the Environment , 1999 .

[43]  Dolores R. Santos-Peñate,et al.  SAM updating using multi‐objective optimization techniques , 2017 .

[44]  経済審議庁,et al.  Input-Output Analysis , 1988 .

[45]  F. You,et al.  Optimal design of sustainable cellulosic biofuel supply chains: Multiobjective optimization coupled with life cycle assessment and input–output analysis , 2012 .

[46]  John W. Chinneck,et al.  Locating Minimal Infeasible Constraint Sets in Linear Programs , 1991, INFORMS J. Comput..

[47]  K. N. Prasad,et al.  Import related inventory management in Indian economy , 1996 .

[48]  Carlos Henggeler Antunes,et al.  A fuzzy multiple objective decision support model for energy-economy planning , 2003, Eur. J. Oper. Res..

[49]  Wassily Leontief Input-Output Economics , 1966 .

[50]  Zaiwen Wen,et al.  Robust linear optimization under matrix completion , 2014 .

[51]  Michael M. Kostreva,et al.  The generalized Leontief input-output model and its application to the choice of new technology , 1993, Ann. Oper. Res..

[52]  B. Saboori,et al.  CO2 emissions, energy consumption and economic growth in Association of Southeast Asian Nations (ASEAN) countries: A cointegration approach , 2013 .

[53]  J. B. Cruz,et al.  Fuzzy input–output model for optimizing eco-industrial supply chains under water footprint constraints , 2011 .

[54]  Ross Cullen,et al.  New methodology for the ecological footprint with an application to the New Zealand economy , 1998 .

[55]  I. Gutmanis,et al.  Input-output models in economic and environmental policy analyses , 1975, Proceedings of the IEEE.

[56]  Morton Noel Lane Goal programming and satisficing models in economic analysis , 1970 .

[57]  P. Pearson,et al.  Input-output simulations of energy, environment, economy interactions in the UK , 1995 .

[58]  Vu Quang Viet Practices in input-output table compilation , 1994 .

[59]  Frederik Muller Energy and Environment in Interregional Input-Output Models , 1979 .

[60]  Maurizio Ciaschini,et al.  Input-output analysis: an introduction , 1988 .

[61]  Dulce Coelho,et al.  Employment effects and renewable energy policies: applying input-output methodology to Portugal , 2013 .

[62]  H. Pao,et al.  The causal relationship between energy resources and economic growth in Brazil , 2013 .

[63]  Giacomo Manetti The quality of stakeholder engagement in sustainability reporting: empirical evidence and critical points , 2011 .

[64]  Jack E. Adams,et al.  The Future Impact of Automation on Workers , 1987 .

[65]  Carlos Henggeler Antunes,et al.  A multi-objective multi-sectoral economyenergyenvironment model: Application to Portugal , 2011 .

[66]  Ilhan Ozturk,et al.  On the relationship between energy consumption, CO2 emissions and economic growth in Europe , 2010 .

[67]  Wassily Leontief National Income, Economic Structure, and Environmental Externalities , 1973 .

[68]  R. Bellman,et al.  Linear Programming and Economic Analysis. , 1960 .

[69]  H. Kunzi,et al.  Lectu re Notes in Economics and Mathematical Systems , 1975 .

[70]  W. Leontief Environmental Repercussions and the Economic Structure: An Input-Output Approach , 1970 .

[71]  Manfred Lenzen,et al.  A Generalized Input-Output Multiplier Calculus for Australia , 2001 .

[72]  Grant Kleeman Las Vegas, USA , 2014 .

[73]  Thijs ten Raa,et al.  Neoclassical Input-Output analysis , 1992 .

[74]  Max E. Jerrell Applications of Interval Computations to Regional Economic Input-Output Models , 1996 .

[75]  Raymond Nadeau,et al.  An Interactive Method To Multiobjective Linear Programming Problems With Interval Coefficients , 1992 .

[76]  Chris Hendrickson,et al.  Environmental Life Cycle Assessment of Goods and Services: An Input-Output Approach , 2006 .

[77]  Usama Al-mulali,et al.  The impact of energy consumption and CO2 emission on the economic growth and financial development in the Sub Saharan African countries , 2012 .

[78]  S. Zionts,et al.  An Interactive Multiple Objective Linear Programming Method for a Class of Underlying Nonlinear Utility Functions , 1983 .

[79]  Chen Lin,et al.  Identifying Lowest‐Emission Choices and Environmental Pareto Frontiers for Wastewater Treatment Wastewater Treatment Input‐Output Model based Linear Programming , 2011 .

[80]  Jyrki Wallenius,et al.  Multiple Objective Analysis of Input-Output Models for Emergency Management , 1990, Oper. Res..

[81]  PingSun Leung,et al.  An integrated energy planning model for Hawaii , 1984 .

[82]  Peter D. Blair,et al.  Input-Output Analysis , 2009 .

[83]  Du Jing,et al.  Multiobjective Optimization Model for Industrial Ecosystem Based on Input-Output Analysis: A Case Study of Combined Heat and Power Plant Eco-industrial Park , 2007, 2007 International Conference on Management Science and Engineering.

[84]  Lei Zhu,et al.  Estimating the Macroeconomic Costs of CO2 Emission Reduction in China Based on Multi-objective Programming , 2010 .

[85]  Y F Huang,et al.  Total waste-load control and allocation based on input-output analysis for Shenzhen, south China. , 2001, Journal of environmental management.

[86]  D. Hristu-Varsakelis,et al.  Optimizing production with energy and GHG emission constraints in Greece: An input-output analysis , 2010 .

[87]  Katta G. Murty,et al.  Infeasibility analysis for linear systems, a survey , 2000 .

[88]  Herman E. Daly,et al.  On Economics as a Life Science , 1968, Journal of Political Economy.

[89]  K. A. Akkemik,et al.  Energy consumption-GDP nexus: Heterogeneous panel causality analysis , 2012 .

[90]  F. Fallahi,et al.  Causal relationship between energy consumption (EC) and GDP: A Markov-switching (MS) causality , 2011 .

[91]  S. Zionts,et al.  An Interactive Programming Method for Solving the Multiple Criteria Problem , 1976 .

[92]  Cheol-Joo Cho,et al.  The economic-energy-environmental policy problem: An application of the interactive multiobjective decision method for Chungbuk Province , 1999 .

[93]  R. Benayoun,et al.  Linear programming with multiple objective functions: Step method (stem) , 1971, Math. Program..

[94]  John L. R. Proops,et al.  Carbondioxide production by the UK economy: An input-output assessment , 1993 .

[95]  R. G. D. Allen,et al.  Mathematics in the Social Sciences and Other Essays. , 1966 .

[96]  Carlos Henggeler Antunes,et al.  A multiple objective model to deal with economy-energy-environment interactions , 2004, Eur. J. Oper. Res..

[97]  F. Duchin Structural Economics: Measuring Change in Technology, Lifestyles, and the Environment , 1998 .

[98]  João C. N. Clímaco,et al.  From TRIMAP to SOMMIX — Building Effective Interactive MOLP Computational Tools , 1997 .

[99]  PingSun Leung,et al.  A multiobjective programming and interindustry model for energy-economic planning in Taiwan , 1987 .

[100]  Mikulás Luptácik,et al.  Eco-Efficiency and Eco-Productivity Change Over Time in a Multisectoral Economic System , 2013, Eur. J. Oper. Res..

[101]  Patrice Perny,et al.  Aiding Decisions with Multiple Criteria , 2002 .

[102]  L. W. Fan,et al.  On stability analysis of multiple objective dynamic input-output model , 2006, Appl. Math. Comput..

[103]  Sergei V. Kazantzev Financial Restrictions in Optimizing Dynamic Input-Output Model , 1985 .

[104]  João C. N. Clímaco,et al.  An Experimental Comparison of MOLP Interactive Approaches Based on a Regional Planning Model , 1997 .

[105]  Carlos Henggeler Antunes,et al.  A multi-objective interactive approach to assess economic-energy-environment trade-offs in Brazil , 2016 .

[106]  M. K. Kravtsov,et al.  A Multicriteria Approach to Optimization of the Gross Domestic Product , 2004 .

[107]  Carlos Henggeler Antunes,et al.  A Study of the Interactions between the Energy System and the Economy Using Trimap , 2002 .

[108]  J. Kowalewski,et al.  Methodology of the input-output analysis , 2009 .

[109]  Carlos Henggeler Antunes,et al.  Multi-Objective Optimization and Multi-Criteria Analysis Models and Methods for Problems in the Energy Sector , 2016 .