This paper presents a new and improved method of hybrid input-output (I-O) to evaluate the economic impact of a biomass power plant's resource production and consumption. The effect of resource consumption induces a change in an economy's production structure and alters the technical coefficient of the hybrid I-O table, which should not be changed. Our study examines this problem based on two cases: a small cutoff ratio from the existing industry, in which the change in the technical coefficient can be ignored, and a large cutoff ratio from the existing industry, in which the technical coefficient is amended using the pre-adjustment method. Consequently, the biomass power plant using the large cutoff ratio from the existing industry case contributes about 1114 million yen to the local economy. A comparison of these two cases shows that the error caused by ignorance of the technical coefficient adjustment could result in 291.78 million yen less in total economic production, which is about 36% of the total additional production using the small cutoff ratio from the existing industry case. The losses in total economic production clearly increase in economic sectors that are related to the resource consumption of the biomass power plant.
Equation 2 is incomplete. What is needed is the specification of the full IO table with the two virtual industries (garbage cleaning and reconstruction), which is only partially done in Table 2. In Section 4 and Table 2 it is explained rightly that garbage cleaning inter alia needs manpower, which is taken from the manpower row of existing industries. Amongst others, this is absent in (2). REPLY: I will add the hybrid I-O table which includes garbage cleaning services and manpower sector.
Abstract. Flooding is a common issue in many countries and can cause extensive damage to residential areas, agricultural and livestock areas, and public facilities. These damages impact the local economy directly and create unexpected demand for goods and services. The consequences of flood damage are marked by the ambiguity of how it changes the production of local economies. For this reason, our study implements the use of the hybrid I-O analysis to evaluate the economic effects of flood damages. The flooding scenario in Kochi prefecture, Japan simulated from the inundation model was selected to demonstrate the analysis. The influences of flood damages were divided into two stages, the garbage cleaning stage and the reconstructing stage; these two stages lead to the different scenarios based on the different activities. It was found that in total, flood damages could stimulate economic growth when the positive effect of reconstruction activities surpass the negative effect of garbage cleaning activities.
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