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L. Chai et al.
an open system. It needs to vigorously develop international connections, continuously introduce advanced technologies, develop foreign trade, export high-quality
products to obtain foreign exchange, and import production factors and products
needed by the economy. Although the various systems of the national economy are
interrelated and have the same goals, in the process of coordinating production, due
to limited resource constraints, conflicts in resource allocation cannot be avoided.
IO analysis is like a chessboard, all parts are included in a chess game to facilitate
overall coordination and overall planning.
3.3 Applying IO Model to Perform Environmental Analysis
Traditional IO accounting is based on the analysis of a purely economic system,
without considering the resources and environmental systems closely related to
economic activities. In the late 1960s, as resource and environmental problems
became more and more serious, scholars in economics began to pay attention to
resource and environmental problems, trying to apply IO models to the study of
the correlation between economic behavior and resources and environment. Many
IO technologies researchers, such as Richard Stone, H. den Hartog, Wassily Daniel
Ford, A. Houweling, W. Leontief, J. E. Meade, etc., were the first to use IO analysis
techniques to study resource and environmental issues. In the 1970s, W. Leontief
was commissioned by the United Nations to use IO technology to study the problems of world economic development and environmental pollution and wrote The
Future of The World Economy. In 1972, H. O. Carter and others of the University of California suggested to use the inter-regional IO model to study the use and
distribution of the Colorado River in California and Arizona. At the International
Pollution Symposium held in Tokyo, Japan in March 1970, Leontief published the
paper “Environmental Repercussions and the Economic Structure: An Input-Output
Approach.” The paper expanded the IO table to include pollutant elimination in the
vertical input and pollutant generation in the horizontal direction [24, 25]. This model
can be used to analyze the impact of limiting pollution on the industrial structure and
price structure, or the cost to be paid by the social economy in order to meet certain
environmental standards, so it is forward-looking and innovative. In 1973, Leontief wrote in his paper National Income, Economic Structure, and Environmental
Externalities further expands the flow of ordinary goods and services among various
departments in the IO table and includes the generation and elimination of pollutants
[26].
The energy crisis that emerged in the 1970s promoted the study of considering energy use and energy-related pollutants in IO models. In 1974, Hartog and
Houweling considered industrial pollutants in the IO model for the first time [11].
Cumberland and Stram introduced this extended model into the economic policy
analysis of environmental constraints [5]. In the 1980s, Hettelingh added different
types of energy conversion matrices to the IO model and analyzed the impact of
electricity, oil, coal, and other energy components on the environment and economy,
L. Chai et al.
an open system. It needs to vigorously develop international connections, continuously introduce advanced technologies, develop foreign trade, export high-quality
products to obtain foreign exchange, and import production factors and products
needed by the economy. Although the various systems of the national economy are
interrelated and have the same goals, in the process of coordinating production, due
to limited resource constraints, conflicts in resource allocation cannot be avoided.
IO analysis is like a chessboard, all parts are included in a chess game to facilitate
overall coordination and overall planning.
3.3 Applying IO Model to Perform Environmental Analysis
Traditional IO accounting is based on the analysis of a purely economic system,
without considering the resources and environmental systems closely related to
economic activities. In the late 1960s, as resource and environmental problems
became more and more serious, scholars in economics began to pay attention to
resource and environmental problems, trying to apply IO models to the study of
the correlation between economic behavior and resources and environment. Many
IO technologies researchers, such as Richard Stone, H. den Hartog, Wassily Daniel
Ford, A. Houweling, W. Leontief, J. E. Meade, etc., were the first to use IO analysis
techniques to study resource and environmental issues. In the 1970s, W. Leontief
was commissioned by the United Nations to use IO technology to study the problems of world economic development and environmental pollution and wrote The
Future of The World Economy. In 1972, H. O. Carter and others of the University of California suggested to use the inter-regional IO model to study the use and
distribution of the Colorado River in California and Arizona. At the International
Pollution Symposium held in Tokyo, Japan in March 1970, Leontief published the
paper “Environmental Repercussions and the Economic Structure: An Input-Output
Approach.” The paper expanded the IO table to include pollutant elimination in the
vertical input and pollutant generation in the horizontal direction [24, 25]. This model
can be used to analyze the impact of limiting pollution on the industrial structure and
price structure, or the cost to be paid by the social economy in order to meet certain
environmental standards, so it is forward-looking and innovative. In 1973, Leontief wrote in his paper National Income, Economic Structure, and Environmental
Externalities further expands the flow of ordinary goods and services among various
departments in the IO table and includes the generation and elimination of pollutants
[26].
The energy crisis that emerged in the 1970s promoted the study of considering energy use and energy-related pollutants in IO models. In 1974, Hartog and
Houweling considered industrial pollutants in the IO model for the first time [11].
Cumberland and Stram introduced this extended model into the economic policy
analysis of environmental constraints [5]. In the 1980s, Hettelingh added different
types of energy conversion matrices to the IO model and analyzed the impact of
electricity, oil, coal, and other energy components on the environment and economy,