Author
Peter de Florez Professor of Regional Political Economy at the Massachusetts Institute of Technology (MIT)
Abstract
Many analysts investigating environmental and energy issues in developing countries. However Iran as a major producer and exporter of oil is different.
The efforts to contuct industrial analyses to determine energy efficient low-pollution sectors in which to invest is misdirected for two reasions. First, some sectors may, on the surface appear to be very energy-conserving and consequently, create only low levels of pollution because-analyst consider only the direct inputs into production process. If analysts consider only energy inputs through use of an input-output table, however they may find that "green" firm, in fact, "brown" firm . Second, the narrow facus of most on evironmental analyeses on firm in a particular location rather than on the entire supply chainserving the firm is misdirected.
In this paper we examine these aspects and present several examples from our research on energy intensity in the Far East, and show how Structural Decomposition Analysis (SDA) of the sectors can help determine the source of the changes in energy intensity. Also we examine the supply chain serving firm which otherwise could lead to misdirected concerns.
Keywords
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