Meeting with Advisor (4/7). Hybrid SDA

I met my advisor, Dr. John Gowdy today:

1. Question and Answer
I asked about the advantages of hybrid approach of Input-Output Structural Decomposition Analysis (SDA). There are 4 advantages of it. Most of all, the hybrid approach is better in keeping original information of input-output table than generalized input-output SDA. Here are the advantages explained by Casler and Rose (1998):

1. It abides by the energy (or pollution) conservation law: There are primary energy and secondary energy whcih is a product of primary energy. When we calculate total energy use, the amount of primary enrgy and the amount of secondary energy plus primary energy used for other production must be equal. Hybrid approach can ensure that the I-O table conserves this law. But other approaches could lose this feature, and over- or under- calculate total amount of energy (Miller and Blair, 1985).
2. It accurately measures changes in energy use (or pollution emissions) that arise. Because this approach shows energy use for each sector.
3. It makes it possible to still use the augmented Leontief inverse.
4. It makes it easy to incoporate with ecological-economic models.

2. Plan of Dissertation
I agreed to write three essays about Economic growth, energy and green house emissions in Korea. First one will be a descriptive essay about economic growth and energy-pollution policy in Korea. I will present general discussion about related issues and evidence.

Second and third ones will be structural decomposition analysis about energy use and green house gas emissions in Korea. They will be more analytical and technical papers.

3. Next Goals

• Understanding SDA method. Read two books that I borrowed.
• Korean data collecting. Money term I-O table at hand. I need energy and green house gas emission data.
• Searching for physical data estimating method. Look up Cleveland's artical about energy IOA.

4. House Keeping

• I borrowed two books:
  Miller and Blair. 1985. Input-output analysis: foundations and extensions.
  Miernyk. 1965. The elements of input-output analysis

Reference

Casler. S.D. and P.D. Blair. 1997. Economic structure, fuel combustion, and pollution emissions.

Casler. S.D. and A. Rose. 1998. Carbon Dioxide emissions in the U.S. economy

Miller and Blair. 1985. Input-output analysis: foundations and extensions.