Example A Piot For Germany 1990 A Functional Sixsector Version

An aggregated version of the original PIOT has been used to create Table 10.2. It has been modified to reflect aspects of a bioeconomic approach proposed by Georgescu-Roegen (1971, 1984) and modified by Strassert (1993, 1997). A general outline of this approach is shown here.

The transaction matrix includes the following six production activities:

M: procurement of raw materials for processing through extraction of matter in situ; E: procurement of effective (available) energy (fuel) through extraction of energy in situ; I: production of new capital goods (investment), capital fund (assets) and maintenance goods (servicing);

C: production of consumer goods for manufacturing and private households; H: household consumption activities, transformation of consumer goods; P: environmental protection services, collection and recycling of residuals in the same establishment and further treatment in external protection facilities or storage in controlled landfills.

For a first characterization of the physical production system of West Germany ('Old Länder', 1990) we look at the characteristic relations/shares which are represented in the total input column and total output row or, equivalently, in the corresponding (aggregated) production account (Table 10.3).

On the input side, starting from the bottom, we see that 78.8 per cent of the total consists of primary (raw) material inputs from nature; that is, natural resources in solid, fluid and gaseous condition, which are transformed by all production activities (including private households) into a set of outputs. Since the de-accumulations of stocks and fixed assets are only a tiny percentage, the total primary material input amounts to less than 79 per cent of total input. The remainder (about 21 per cent of total input) belongs to total secondary or transformation production; that is, the intermediate production of all production activities including that of private households.

What is the result? Starting now from the top on the output side, first comes intermediate production (about 21 per cent). Next comes final main products in terms of accumulation of stocks and fixed assets (material gross investment) plus exports minus imports, with a share of less than 1 per cent, and, third, total final by-production of material residuals or waste, in solid, fluid and gaseous condition, with a share of about 79.0 per cent.

Table 10.2 A physical input-output table for Germany, 1990 ('Old Länder'), six functional activities, million tons

Table 10.2 A physical input-output table for Germany, 1990 ('Old Länder'), six functional activities, million tons

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