An Introductory Review of Input-Output Analysis in Sustainability Sciences Including Potential Implications of Aggregation

Input-output analysis has become a widely established method in sustainability sciences. It is primarily used macroeconomic footprint analyses for allocating an economy’s externalities among the agents that economy based on agents’ input-output interdependencies. However, databases are commonly compiled by aggregating data. Aggregation of data inevitably leads to loss information and some instances can lead misinformed decision-making. The goal this paper provide simple hands-on numerical introduction including potential implications aggregation original manner. First, calculation production-based consumption-based inventories introduced dummy 2 × table. Next, table compared with corresponding non-aggregated 4 A comparison both tables allows exemplary demonstration inaccurate allocation as result conclude Overall, work offers succinct numerically substantiated introductory review practitioners sciences Its simplistic approach sets apart from other publications founded economics or econometrics.