A hybrid input–output multi-objective model to assess economic–energy–environment trade-offs in Brazil

Abstract

A multi-objective linear programming (MOLP) model based on a hybrid Input–Output (IO) framework is presented. This model aims at assessing the trade-offs between economic, energy, environmental (E3) and social objectives in the Brazilian economic system. This combination of multi-objective models with Input–Output Analysis (IOA) plays a supplementary role in understanding the interactions between the economic and energy systems, and the corresponding impacts on the environment, offering a consistent framework for assessing the effects of distinct policies on these systems. Firstly, the System of National Accounts (SNA) is reorganized to include the National Energy Balance, creating a hybrid IO framework that is extended to assess Greenhouse Gas (GHG) emissions and the employment level. The objective functions considered are the maximization of GDP (gross domestic product) and employment levels, as well as the minimization of energy consumption and GHG emissions. An interactive method enabling a progressive and selective search of non-dominated solutions with distinct characteristics and underlying trade-offs is utilized. Illustrative results indicate that the maximization of GDP and the employment levels lead to an increase of both energy consumption and GHG emissions, while the minimization of either GHG emissions or energy consumption cause negative impacts on GDP and employment.