Quotation Cahen-Fourot, Louison, Campiglio, Emanuele, Dawkins, Elena, Godin, Antoine, Kemp-Benedict, Eric. 2020. Looking for the Inverted Pyramid: An Application Using Input-Output Networks. Ecological Economics. 169


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Abstract

Herman Daly's view of the economy as an “inverted pyramid” sitting on top of essential raw material inputs is compelling, but not readily visible in monetary data, as the contribution of primary sectors to value added is typically low. This article argues that “forward linkages”, a classical development theory concept capturing the relevance of a sector for downstream activities, is an informative and complementary measure to identify key sectors. Using Input-Output (IO) data from eighteen European countries, we identify mining as the sector with the highest average forward linkages, and confirm the consistency of this result across countries via cluster analysis. By treating IO tables as the adjacency matrix of a directed network, we then build and visualise national inverted pyramid networks, and analyse their structure. Our approach highlights the role of natural resources in providing the necessary inputs to modern European economies.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Ecological Economics
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, STRAT-B, VW-C, WH-B
Language English
Title Looking for the Inverted Pyramid: An Application Using Input-Output Networks
Volume 169
Year 2020
DOI https://doi.org/10.1016/j.ecolecon.2019.106554
Open Access N

Associations

People
Cahen-Fourot, Louison (Details)
Campiglio, Emanuele (Details)
External
Dawkins, Elena (Stockholm Environment Institute, Sweden)
Godin, Antoine (Institut für Makroökonomie und Konjunkturforschung, Germany)
Kemp-Benedict, Eric (Stockholm Environment Institute, United States/USA)
Organization
Institute for Ecological Economics IN (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
1909 Resource economics, - management (Details)
2928 Environmental economics (Details)
2959 Sustainable development, sustainable economics (Details)
5371 Macroeconomics (Details)
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