Energy supply and use, Emissions and the Economy

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The economic data

Given that SU tables provide the most up to date official economic data for South Africa for 2000 and that there is no official IO table for the baseline year, this study uses these data to develop an economic IO table. According to Statistics South Africa (2003), SU tables form the basis for the estimation of IO tables both at current prices and at constant prices and they form an integral part of the SNA.
Final demand in both the initial and the augmented economic IO tables comprises of household consumption, government expenditure, investment and savings and exports while value added comprises employment/wages, taxes less subsidies, gross operating surplus and imports. Household consumption, government expenditure and exports are directly obtained from the use table, while the investments and savings sector combine fixed capital formation, change in inventories from the SU tables as well as residuals which are used to balance the tables. Employment, taxes less subsidies and gross operating surplus are also directly obtained from the use table while imports were taken directly from the supply table.
Table 5.1 presents the initial aggregated economic IO table with 15 economic sectors, 4 final demand sectors and 4 value added sectors. In order to augment this table into the 20×20 economic energy IO table a set of energy accounts is needed.

Energy Accounts for South Africa

The IO table developed in the previous section has three energy sectors namely coal, petrochemicals and electricity. The energy IO table will further disaggregate these three energy sectors in order to develop a more detailed augmented energy IO table. Firstly energy production will be differentiated from energy consumption then primary energy will be separated from secondary energy. The initial energy sectors aggregate primary energy and secondary energy, which makes it difficult to determine the exact source and quantity of energy produced and consumed in the economy. Separate primary and secondary energy accounts are needed for energy emissions calculations.
The energy IO table as presented in Table 5.2 disaggregates the initial energy sectors into coal, crude oil, natural gas, nuclear energy, renewable energy and biomass as is primary energy consumed in the economy while the two main secondary energy sectors in the energy IO table are electricity and petroleum products. The augmented energy IO table retains coal sector entries from the initial IO table but the initial IO table aggregates; crude oil, natural gas and petroleum products as petrochemicals and nuclear energy and electricity are aggregated as the electricity sector. This study will develop a set of energy accounts that will be used to disaggregate these two sectors. Biomass and renewable energy are not accounted for in the initial IO table. The augmented energy
IO table quantifies and includes biomass and renewable energy as economic sectors. As a result economic output in the augmented energy IO table differs from economic output in the initial IO table by a value that equals the value of biomass and renewable energy in the economy. Energy accounts are calculated using data from the SU tables, National Energy Balance for 2000 and national energy prices statistics for 2000 from the national Department of Minerals and Energy (DME) and compared against industry data. Data in the SU tables and the National Energy Balance are used to verify the energy accounts developed by this study.
Although it is possible to obtain comparative data from different sources for the base year 2000, when compared to other national and international data, a number of discrepancies are identified. The main reason for these discrepancies appears to result from the way in which data are collected and collated by different organisations. Differences also arise from the manner in which sectors are defined. This study subscribes to the international SIC classification, which defines sectors in the SU tables. Data in different studies are not only reported in different formats but in different units as well. Conversion factors are used to convert some of the data. There is no consistency in the way data in international studies are reported as different currencies and different exchange rates are used.

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Chapter 1: Introduction and Motivation
1.1. Background
1.2. Problem Statement
1.3. Objectives of the study
1.4. Approach and methods
1.5. Structure of the study
Chapter 2: Energy supply and use, Emissions and the Economy
2.1. Introduction
2.2. Energy supply and use in South Africa
2.3. Energy emissions in South Africa
2.4. The South African economy
2.5. Conclusion
Chapter 3: Literature Review
3.1. Introduction
3.2. Energy emissions reduction policies
3.3. Energy emissions input-output models
3.4. Energy emissions analysis in South Africa
3.5. Conclusion
Chapter 4: Approach and Methodology
4.1 Introduction
4.2. Augmented energy input-output table for South Africa
4.3. Physical energy input-output table for South Africa
4.4. Physical energy emissions input-output table for South Africa
4.5. Energy emission policy analysis for South Africa
Chapter 5: Energy-Emissions Input-Output Model for South Africa
5.1. Introduction
5.2. The economic data
5.3. Physical energy data
5.4. Physical energy emissions data
5.5. Energy emissions IO model
Chapter 6: Energy Emissions Reduction Policy Analysis
6.1. Introduction
6.2. Policy scenarios
6.3. Expected policy impacts
6.4. Results of policy analysis
6.5. Discussion of policy analysis
Chapter 7: Summary, Conclusions and Implications


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