Green growth planning: A multi-factor energy input-output analysis of the Canadian economy

Abstract

Incorporating socioeconomic and environmental considerations into energy decisions is necessary when tackling climate change and accelerating green growth. In this work, we propose a novel extension of the multi-factor energy input-output model to support evidence-informed energy policy-making and green growth planning through the introduction of eight different multipliers and two green growth indexes. We demonstrate the approach through application at the national scale in Canada. In particular, we quantitatively assess the extent to which changes in final demand impact the domestic and imported primary (and renewable) energy flows, CO2 emissions, economic expansion, and energy job earnings. The results point to a potential path of green growth in Canada, prioritizing activities that generate economic and job growth at minimal environmental pressure (i.e., fewer CO2 emissions). Economic activities that are critical for stimulating green growth in the short to medium run are identified, and recommendations are made regarding a longer structural change path for improving the supply chains of other economic activities. This work provides insights to decision-makers seeking strategies (e.g., policy reforms or targeted public expenditure strategies) to accelerate green growth planning on a national scale.