Advertisement

Modelling Manufactured Capital Stocks and Material Flows in the Australian Stocks and Flows Framework

  • James A. Lennox
  • Graham M. Turner
Part of the Eco-Efficiency in Industry and Science book series (ECOE, volume 23)

Manufactured capital stocks and their relationships to physical flows of materials and energy are of interest in the fields of industrial ecology and input-output analysis. Manufactured capital stocks embody technologies, which may be characterised by input-output (IO) relations. The rate and nature of technological and structural change in an economy are therefore related to the dynamics of these stocks. Certain capital stocks also act as substantial long-lived stores of materials in the anthroposphere. Additions to and scrapping of these stocks directly generate flows of new and used materials and wastes. This chapter is concerned with two relationships between manufactured capital stocks and material flows, and in particular, how they may be modelled in the field of industrial ecology. Examples are drawn from scenarios developed using the Australia Stocks and Flows Framework (ASFF) (Foran and Poldy 2002).

Section two of this chapter deals with methodological and practical issues encountered in accounting for and modelling manufactured capital stocks. Both commonalities and differences between economic and physical perspectives on capital stocks are discussed. An example is given of historical and projected vehicle stocks in Australia. Section three deals with input-output modelling of technologies embodied in capital stocks, focussing particularly on the ‘bottom-up’ or ‘process modelling’ approach employed in ASFF. An example of process-based IO models for steel production in Australia is provided. Section four is concerned with dynamic models of stocks and flows in Industrial Ecology. A dynamic physical IO model (Lennox et al. 2004) within ASFF is described and an example of material flows associated with electricity generation capacity is given. Section 5 concludes the chapter, providing a brief discussion of key issues in modelling capital stocks in terms of material stores and/or embodied technologies within the field of industrial ecology.

Keywords

Technological Change Capital Stock Material Flow Industrial Ecology Basic Oxygen Furnace 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Algera, S. (1999). Structural business statistics: A key role in the system of economic statistics, the Dutch case. The Netherlands Official Statistics, 14, 4–9.Google Scholar
  2. Australian Bureau of Statistics (2002). Motor vehicle census., Canberra, Australia.Google Scholar
  3. Azid, T. (2004). Micro foundations of macro economics: An empirical evidence of sectoral Phillips curve. 9th Australasian Macroeconomic Workshop, Canberra, Australia.Google Scholar
  4. Boustead, I., … Handcock, G. F. (1979). Handbook of industrial energy analysis. Chichester: Ellis Horwood.Google Scholar
  5. Bruvoll, A., … Ibenholt, K. (1997). Future waste generation. Resources, Conservation and Recycling, 19, 137–149.CrossRefGoogle Scholar
  6. Coal in a Sustainable Society (CISS) (2001). LCA case studies: Appendices B—electricity Australian Coal Association Research Program, Sidney, Australia.Google Scholar
  7. Davidsdottir, B. (2002). A vintage analysis of regional energy and fiber use, technology change and greenhouse gas emissions by the US pulp and paper industry. Boston, MA: Boston University.Google Scholar
  8. Duchin, F., … Szyld, D. (1985). A dynamic input-output model with assured positive output. Metroeconomica, 27, 269–282.Google Scholar
  9. Duchin, F., Lange, G., Thonstad, K., … Idenburg, A. (1994). The future of the environment: Ecological economics and technological change, New York: Oxford University Press.Google Scholar
  10. Eurostat (2001). Economy-wide material flow accounts and derived indicators. A methodological guide. Office for Official Publications of the European Communitites, Luxembourg, Europe: European Commission.Google Scholar
  11. Foran, B., … Poldy, F. (2002). Future dilemmas: Options to 2050 for Australia's population, technology, resources and environment. Working paper series 02/10, Canberra, Australia: CSIRO Sustainable Ecosystems.Google Scholar
  12. Frenken, J. (1992). How to measure tangible capital stock? International Association for Research in Income and Wealth, Twenty-second General Conference, Fims, Switzerland.Google Scholar
  13. Gault, F., Hoffman, R., … McInnis, B. (1985). The path to process data. Futures (October), 509–527.Google Scholar
  14. Gault, F., Hamilton, K., Hoffman, R., … McInnis, B. (1987). The design approach to socioeconomic modelling. Futures (February), 3–25.Google Scholar
  15. Gielen, D., Gerlagh, T., … Bos, A. (1998). MATTER 1.0: A MARKAL energy and materials system model characterisation. Petten, The Netherlands: ECN.Google Scholar
  16. Gravgård, P. O. (1999). Physical input-output tables for Denmark. Copenhagen: Danmarks Statistik.Google Scholar
  17. Golan, A., Judge, G., … Miller, D. (1996). Maximum entropy econometrics: robust estimation with limited data. Chichester, UK: John Wiley … Sons Ltd.Google Scholar
  18. Hulton, C. (1999). The measurement of capital. Paris: OECD.Google Scholar
  19. Idenburg, A. (1998). Technological choices and the eco-efficiency of the economy: A dynamic input-output approach. In XII International Conference on Input-Output Techniques, New York.Google Scholar
  20. Idenburg, A., … Wilting, H. (2000). DIMITRI: A dynamic input-output model to study the impacts of technology related innovations. In XIII International Conference on Input-Output Techniques, Macerata, Italy.Google Scholar
  21. IEA (1998). Mapping the energy future: Energy modeling and climate change policy, OECD/IEA.Google Scholar
  22. Konijn, P. (1994). The make and use of commodities by industries — on the compilation of inputoutput data from the national accounts. Twente, The Netherlands: University of Twente.Google Scholar
  23. Konijn, P., de Boer, S., … van Dalen, J. (1995). Material flows and input-output analysis. The Netherlands: Statistics Netherlands.Google Scholar
  24. Konijn, P., de Boer, S., … van Dalen, J. (1997).Input-output analysis of material flows with application to iron, steel and zinc. Structural Change and Economic Dynamics, 8, 129–153.CrossRefGoogle Scholar
  25. Kónya, L. (1994). Introduction into the theory of vintage models. Melbourne, Australia: La Trobe University.Google Scholar
  26. Koopmans, T. (1951). Activity analysis of production and allocation. In Conference Proceedings, Cowles Commission Monograph, 13, Wiley.Google Scholar
  27. Koopmans, T. (1953). Activity analysis and its applications. American Economic Review, 43(2).Google Scholar
  28. Lennox, J. A., Turner, G. M., Hoffmann, R., … McInnis, B. C. (2004). Modelling Australian basic industries in the Australian Stocks and flows framework. Journal of Industrial Ecology, 8(4), 101–120.CrossRefGoogle Scholar
  29. Leontief, W. (1970a). The dynamic inverse. In A. Carter … A. Brody (Eds.), Contributions to input-output analysis (pp. 17–46). Amsterdam: North-Holland.Google Scholar
  30. Leontief, W. (1970b). Environmental repercussions and the economic structure: An input-output approach. Review of Economics and Statistics, 52(3), 262–271.CrossRefGoogle Scholar
  31. Leontief, W. (1972). Air pollution and the economic structure: Empirical results of inputoutput computations. In A. Brody … A. Carter (Eds.), Input-output techniques. Amsterdam: North-Holland.Google Scholar
  32. Leontief, W., Carter, A., … Petri, P. (1977). Future of the world economy. New York: Oxford University Press.Google Scholar
  33. Löschel, A. (2002). Technological change in economic models of environmental policy: A survey. Ecological Economics, 43(2–3), 105–126.CrossRefGoogle Scholar
  34. OECD (2001). Measuring capital. Paris: OECD.Google Scholar
  35. Poldy, F., Foran, B., … Conroy, J. (2000). Future options to 2050: Australian stocks and flows framework: Report to Department of Immigration and Multicultural Affairs. CSIRO Sustainable Ecosystems. Canberra, Australia: National Futures.Google Scholar
  36. Ruth, M., Davidsdottir, B., … Amato, A. (2004). Climate change policies and capital vintage effects: The cases of US pulp and paper, iron and steel, and ethylene. Journal of Environmental Management, 70(3), 235–252.CrossRefGoogle Scholar
  37. Sonis, M., … Hewings, G. (1998). Temporal Leontief inverse. Macroeconomic Dynamics, 2, 89–114.Google Scholar
  38. Tilanus, C. (1967). Marginal Vs. average input-output coefficients in input-output forecasting. Quarterly Journal of Economics, 81(1), 140–145.CrossRefGoogle Scholar
  39. United Nations et al. (2003). Handbook of national accounting. Integrated environmental and economic accounting.Google Scholar
  40. United States Bureau of Economic Analysis (US BEA) (1999). Fixed reproducible tangible wealth in the United States, 1925–94, USA.Google Scholar
  41. World Commission on Environment and Development (1987). Our common future. Oxford: Oxford University Press.Google Scholar

Copyright information

© Springer Science+Business Media B.V. 2009

Authors and Affiliations

  • James A. Lennox
    • 1
  • Graham M. Turner
    • 2
  1. 1.Sustainability and Society Team of Landcare ResearchLincolnNew Zealand
  2. 2.CSIRO Sustainable EcosystemsCanberraAustralia

Personalised recommendations