I am interested in using environmentally-extended input-output models to construct different scenarios representing waste reduction (efficiency gains) in different economic sectors representing stages of the food supply chain, and calculating the total impact reduction across all sectors in the food supply chain when the rate of waste decreases in one or more sectors. I am using the Bureau of Economic Analysis input-output tables to provide baseline data.

I am not sure what method to use to simulate technological or structural change in the input-output system. For example, I would like to simulate the marginal effect on the economy for a given amount of reduction in the inputs required for one sector of the economy to produce its output. I am aware of the RAS method which allows you to re-estimate the coefficients of the direct requirements matrix, if the new gross outputs are known. However I do not know what is the appropriate method if I want to simulate changes in the input to output ratio of particular sectors, while maintaining final demand constant. Thanks very much in advance for your help.


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