Rutger Hoekstra examines the complex relationship between the
monetary economy and the materials flows that are extracted and
emitted by economic activities. These physical flows are
responsible for many important environmental problems such as
unsustainable resource depletion, waste production and climate
change. This book discusses, applies and improves upon techniques
which link the monetary and physical economies for environmental
analyses. The book uses two sources of analysis: the physical
input-output table (PIOT), a macro-economic account for the
physical economy, recording material and product flows, including
resource extraction, emissions and recycling; and structural
decomposition analysis (SDA), which assesses the influence of
structural changes, such as economic growth, consumption shifts,
export growth and technological change, on environmental
indicators. Methodological improvements in the PIOT and SDA systems
are then presented by the author, and applied to empirical data.
Ecological and industrial economists, along with those with an
interest in environmental problems associated with the economy will
find this book, with its extensive historical analysis and novel
fore- and back-casting models, to be a fascinating read.
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