Impacts of new energy technology using generalized input-output analysis

Abstract

The economic and environmental impacts of several new energy technologies (high and low BTU coal gasification and the gas turbine topping cycle) were examined for the 1980–1985 time period. A projected 1980–1985 U.S. input-output matrix was augmented to include environmental and resource usage variables. Engineering studies were used to modify the input-output matrix to represent the introduction of new energy technologies. The results illustrate the high sensitivity of capital investment to the rate of growth of energy consumption. The results also illustrate several economic mechanisms that will help to hold total capital investment within its historical bounds as a percentage of GNP. The methodology and many possible applications and extensions of generalized input-output model are included. A short critique of the methodology is also presented.