Validation of the use of input-output data for embodied energy analysis of the Australian construction industry

This paper evaluates a recently developed hybrid method for the embodied energy analysis of the Australian construction industry. It was found that the truncation associated with process analysis can be up to 80%, whilst the use of input-output analysis alone does not always provide a perfect model for replacing process data. There is also a considerable lack in the quantity and possibly quality of process data currently available. These findings suggest that current best-practice methods are sufficiently accurate for most typical applications, but this is heavily dependant upon data quality and availability. The hybrid method evaluated can be used for the optimisation of embodied energy and for identifying opportunities for improvements in energy efficiency.

Economic indicator comparisons of international real estate sectors using the OECD input-output database

With its growing share in national economies, the real estate sector has been considered a vital contributor of economic development. Research efforts are needed in order to gain a better comprehension of the national specificities of the real estate sector and to identify its role in economic development. Due to limited comparable data, the economic indicators of real estate sectors are hard to compare between different countries. This paper aims to explore the quantitative interdependence amongst the real estate sector and other industries in developed economies using input-output analysis, and to investigate their significant linkages. Based on the recently published Organisation for Economic Co-operation and Development (OECD) input-output database at constant prices, the analysis focuses on the real estate's escalating role in terms ofshares in gross output, value added and gross national product. With emphasis on the relative role of manufacturing, construction and services inputs, this paper also highlights the strengths of the push and pull of the real estate sector.

Multifactor productivity measures of construction sectors using OECD input-output database

This research develops a new productivity measurement framework for the construction sector in the light of an input-output table. Three group multifactor productivity indicators are formulated based on the multiplier concepts in the input-output analysis. This measurement framework focuses on the intro-industry flows of products and considers the direct and indirect effects of input and output. Moreover, this framework enables us to measure the multifactor productivity of a specific sector systematically. Historical analyses and international comparisons are carried out to indicate the differences of the productivity of the construction sectors in seven selected countries, using the newly published OECD input-output database. Research findings are expected to clarify how technological, organizational and political factors affect the productivity growth, enabling the policy makers, construction businesses and researchers to quantify the competitive ability of the construction sector.

Validation of the use of Australian input-output data for building embodied energy simulation

Traditional!y, the simulation of buildings has focused 011 operational energy consumption in an attempt to determine the potential for energy savings. Whilst operational energy of Australian buildings accounts for around 20% of total energy consumption nationally, embodied energy represents 20 to 50 times the annual operational energy of 1110st Australian buildings. Lower values have been shown through a number of studies that have analysed the embodied energy of buildings and their products, however these have now shown to be incomplete in system boundary. Many of these studies have used traditional embodied energy analysis methods, such as process analysis and input-output analysis, Hybrid embodied energy analysis methods have been developed, but these need to be compared and validated. This paper reports on preliminary work on this topic. The findings so far suggest that current best-practice methods are sufficiently accurate for most typical applications, but this is heavily dependant upon data quality and availability.

An input-output table perspective on measuring construction productivity

In the field of construction economics, input-output analysis based studies' have attracted a lot of interest from the academics and researchers. The wide efforts are to carry out analyses and comparisons of economic indicators in construction sectors across countries and years. There has been little research modelling the construction productivity using input-output tables. This research takes advantage of the input-output analysis to develop a perspective for determining the productivity of an industrial sector. The developed quantitative formulas are fully based on the economic indicators generated from an input-output table. Using the newly published OECD input-output database, historical analyses and comparisons are carried out to indicate the differences of prod uctivi ties of the construction sectors in Australia and Japan.

An input-output approach for measuring real estate sector linkages

This research aims to measure and compare the total, backward, forward, internal and sectoral linkages of the real estate sector using the hypothetical extraction method over 30 years and explore the role of this sector in national economies and the quantitative interdependence between the real estate sector and the remaining sectors from a new angle. Empirical results show an increasing trend of these linkages, which confirms the increasing role of the real estate sector with economic maturity over the examined period. On the other hand, the significant rank correlations in the linkages imply that the importance of real estate remained fairly stable among highly developed economies over the examined period. This may supply a tool to signal the maturity of an entire economy. Furthermore, the findings can aid both governments making relative policies and businesses choosing strategic partners and location strategies.

Measuring output structures of multinational construction industries using the World Input‒Output Database

In the context of international movement towards trade liberalization, increasing technological progress, open competition and social development have impacted deeply on the construction industry in all economies. Using the World Input–Output Database (WIOD), a multinational comparison of the construction industry is estimated from 1995 to 2011 to provide accurate and valid information on the changing patterns of its output structure. The output coefficients for 37 countries and regions are formulated to allow for inter-industry comparisons and to identify the major components of construction output. Changes of output structure are then elaborated over time across countries and regions. The research findings presented in this paper would provide a framework for identifying the output structure of a nation's construction industry and its change trends at an international level, which may help policymakers and enterprises with the formulation of their future development strategies.

Using national input-output data for embodied energy analysis of individual residential buildings

Embodied energy (EE) analysis has become an important area of energy research, in attempting to trace the direct and indirect energy requirements of products and services throughout their supply chain. Typically, input-output (I-O) models have been used to calculate EE because they are considered to be comprehensive in their analysis. However, a major deficiency of using I-O models is that they have inherent errors and therefore cannot be reliably applied to individual cases. Thus, there is a need for the ability to disaggregate an I-O model into its most important 'energy paths', for the purpose of integrating case-specific data. This paper presents a new hybrid method for conducting EE analyses for individual buildings, which retains the completeness of the I-O model. This new method is demonstrated by application to an Australian residential building. Only 52% of the energy paths derived from the I-O model were substituted using case-specific data. This indicates that previous system boundaries for EE studies of individual residential buildings are less than optimal. It is envisaged that the proposed method will provide construction professionals with more accurate and reliable data for conducting life cycle energy analysis of buildings. Furthermore, by analysing the unmodified energy paths, further data collection can be prioritized effectively.

Economic performance analysis of the Australian property sector using input-output tables

The property sector has played an important role with its growing contribution in the national income and employment in the Australian economy. There is an increasing research need in measuring and analysing the economic performance of the Australian property sector at a country level and input-output tables are considered as an appropriate tool. This paper aims to analyse and measure the performance and sectoral linkages of the Australian property sector using the five latest input-output tables compiled by the Australian Bureau of Statistics. Findings suggested that the Australian residential property sector had played a more important role than the commercial sector in the economy. The backward linkage of the residential property sector showed a decreasing economic pull, while that of commercial property presented an upward pattern. Moreover. the Australian property sector showed a medium economic push to the national economy over the examined period. Findings can aid policy makers, the property sector and researchers in evaluating the competitive ability of the property sector in Australia.

Using input-output data in life cycle inventory analysis

The impacts on the environment from human activities are of increasing concern. The need to consider the reduction in energy consumption is of particular interest, especially in the construction and operation of buildings, which accounts for between 30 and 40% of Australia's national energy consumption. Much past and more recent emphasis has been placed on methods for reducing the energy consumed in the operation of buildings. With the energy embodied in these buildings having been shown to account for an equally large proportion of a building's life cycle energy consumption, there is a need to look at ways of reducing the embodied energy of buildings and related products. Life cycle assessment (LCA) is considered to be the most appropriate tool for assessing the life cycle energy consumption of buildings and their products. The life cycle inventory analysis (LCIA) step of a LCA, where an inventory of material and energy inputs is gathered, may currently suffer from several limitations, mainly concerned with the use of incomplete and unreliable data sources and LCIA methods. These traditional methods of LCIA include process-based and input-output-based LCIA. Process-based LCIA uses process specific data, whilst input-output-based LCIA uses data produced from an analysis of the flow of goods and services between sectors of the Australian economy, also known as input-output data. With the incompleteness and unreliability of these two respective methods in mind, hybrid LCIA methods have been developed to minimise the errors associated with traditional LCIA methods, combining both process and input-output data. Hybrid LCIA methods based on process data have shown to be incomplete. Hybrid LCIA methods based on input-output data involve substituting available process data into the input-output model minimising the errors associated with process-based hybrid LCIA methods. However, until now, this LCIA method had not been tested for its level of completeness and reliability. The aim of this study was to assess the reliability and completeness of hybrid life cycle inventory analysis, as applied to the Australian construction industry. A range of case studies were selected in order to apply the input-output-based hybrid LCIA method and evaluate the subsequent results as obtained from each case study. These case studies included buildings: two commercial office buildings, two residential buildings, a recreational building; and building related products: a solar hot water system, a building integrated photovoltaic system and a washing machine. The range of building types and products selected assisted in testing the input-output-based hybrid LCIA method for its applicability across a wide range of product types. The input-output-based hybrid LCIA method was applied to each of the selected case studies in order to obtain their respective embodied energy results. These results were then evaluated with the use of a number of evaluation methods. These evaluation methods included an analysis of the difference between the process-based and input-output-based hybrid LCIA results as an evaluation of the completeness of the process-based LCIA method. The second method of evaluation used was a comparison between equivalent process and input-output values used in the input-output-based hybrid LCIA method as a measure of reliability. It was found that the results from a typical process-based LCIA and process-based hybrid LCIA have a large gap when compared to input-output-based hybrid LCIA results (up to 80%). This gap has shown that the currently available quantity of process data in Australia is insufficient. The comparison between equivalent process-based and input-output-based LCIA values showed that the input-output data does not provide a reliable representation of the equivalent process values, for material energy intensities, material inputs and whole products. Therefore, the use of input-output data to account for inadequate or missing process data is not reliable. However, as there is currently no other method for filling the gaps in traditional process-based LCIA, and as input-output data is considered to be more complete than process data, and the errors may be somewhat lower, using input-output data to fill the gaps in traditional process-based LCIA appears to be better than not using any data at all. The input-output-based hybrid LCIA method evaluated in this study has shown to be the most sophisticated and complete currently available LCIA method for assessing the environmental impacts associated with buildings and building related products. This finding is significant as the construction and operation of buildings accounts for a large proportion of national energy consumption. The use of the input-output-based hybrid LCIA method for products other than those related to the Australian construction industry may be appropriate, especially if the material inputs of the product being assessed are similar to those typically used in the construction industry. The input-output-based hybrid LCIA method has been used to correct some of the errors and limitations associated with previous LCIA methods, without the introduction of any new errors. Improvements in current input-output models are also needed, particularly to account for the inclusion of capital equipment inputs (i.e. the energy required to manufacture the machinery and other equipment used in the production of building materials, products etc.). Although further improvements in the quantity of currently available process data are also needed, this study has shown that with the current available embodied energy data for LCIA, the input-output-based hybrid LCIA appears to provide the most reliable and complete method for use in assessing the environmental impacts of the Australian construction industry.

Input and output analysis of complex conveyor networks

Material transfer networks are at the heart of critical infrastructure in many modern service and manufacturing industries. This research identified key performance measures, while deriving generalised analysis methodologies, for simulation models. The technology was validated for international airports, and used to determine operational capacity constraints under varied demand conditions.

Comparison of multifactor productivity indicators for real estate sectors using the OECD input-output database

"Research on the international comparison of productivity has gained significant interest throughout several previous decades. Relatively little work has however been done in the real estate sector. This paper aims to develop a new productivity measurement framework for the international comparison of the real estate sector based on the newly-published OECD input-output database. Three multifactor productivity indicators are formulated using the ratio of the sectoral final demand to value added, the intermediate output to intermediate input and the total output to total input effect respectively in the input-output table. Historical analyses and comparisons are also carried out to indicate the differences of productivities of the real estate sectors in seven selected countries. Findings can improve the understanding of how technological, organisational and policy influences combine to affect productivity growth and aid the policy makers, real estate agencies and researchers in evaluating the competitive ability of the real estate sector."

Comprehensive embodied energy analysis framework

The assessment of the direct and indirect requirements for energy is known as embodied energy analysis. For buildings, the direct energy includes that used primarily on site, while the indirect energy includes primarily the energy required for the manufacture of building materials. This thesis is concerned with the completeness and reliability of embodied energy analysis methods. Previous methods tend to address either one of these issues, but not both at the same time. Industry-based methods are incomplete. National statistical methods, while comprehensive, are a ‘black box’ and are subject to errors. A new hybrid embodied energy analysis method is derived to optimise the benefits of previous methods while minimising their flaws. In industry-based studies, known as ‘process analyses’, the energy embodied in a product is traced laboriously upstream by examining the inputs to each preceding process towards raw materials. Process analyses can be significantly incomplete, due to increasing complexity. The other major embodied energy analysis method, ‘input-output analysis’, comprises the use of national statistics. While the input-output framework is comprehensive, many inherent assumptions make the results unreliable. Hybrid analysis methods involve the combination of the two major embodied energy analysis methods discussed above, either based on process analysis or input-output analysis. The intention in both hybrid analysis methods is to reduce errors associated with the two major methods on which they are based. However, the problems inherent to each of the original methods tend to remain, to some degree, in the associated hybrid versions. Process-based hybrid analyses tend to be incomplete, due to the exclusions associated with the process analysis framework. However, input-output-based hybrid analyses tend to be unreliable because the substitution of process analysis data into the input-output framework causes unwanted indirect effects. A key deficiency in previous input-output-based hybrid analysis methods is that the input-output model is a ‘black box’, since important flows of goods and services with respect to the embodied energy of a sector cannot be readily identified. A new input-output-based hybrid analysis method was therefore developed, requiring the decomposition of the input-output model into mutually exclusive components (ie, ‘direct energy paths’). A direct energy path represents a discrete energy requirement, possibly occurring one or more transactions upstream from the process under consideration. For example, the energy required directly to manufacture the steel used in the construction of a building would represent a direct energy path of one non-energy transaction in length. A direct energy path comprises a ‘product quantity’ (for example, the total tonnes of cement used) and a ‘direct energy intensity’ (for example, the energy required directly for cement manufacture, per tonne). The input-output model was decomposed into direct energy paths for the ‘residential building construction’ sector. It was shown that 592 direct energy paths were required to describe 90% of the overall total energy intensity for ‘residential building construction’. By extracting direct energy paths using yet smaller threshold values, they were shown to be mutually exclusive. Consequently, the modification of direct energy paths using process analysis data does not cause unwanted indirect effects. A non-standard individual residential building was then selected to demonstrate the benefits of the new input-output-based hybrid analysis method in cases where the products of a sector may not be similar. Particular direct energy paths were modified with case specific process analysis data. Product quantities and direct energy intensities were derived and used to modify some of the direct energy paths. The intention of this demonstration was to determine whether 90% of the total embodied energy calculated for the building could comprise the process analysis data normally collected for the building. However, it was found that only 51% of the total comprised normally collected process analysis. The integration of process analysis data with 90% of the direct energy paths by value was unsuccessful because: • typically only one of the direct energy path components was modified using process analysis data (ie, either the product quantity or the direct energy intensity); • of the complexity of the paths derived for ‘residential building construction’; and • of the lack of reliable and consistent process analysis data from industry, for both product quantities and direct energy intensities. While the input-output model used was the best available for Australia, many errors were likely to be carried through to the direct energy paths for ‘residential building construction’. Consequently, both the value and relative importance of the direct energy paths for ‘residential building construction’ were generally found to be a poor model for the demonstration building. This was expected. Nevertheless, in the absence of better data from industry, the input-output data is likely to remain the most appropriate for completing the framework of embodied energy analyses of many types of products—even in non-standard cases. ‘Residential building construction’ was one of the 22 most complex Australian economic sectors (ie, comprising those requiring between 592 and 3215 direct energy paths to describe 90% of their total energy intensities). Consequently, for the other 87 non-energy sectors of the Australian economy, the input-output-based hybrid analysis method is likely to produce more reliable results than those calculated for the demonstration building using the direct energy paths for ‘residential building construction’. For more complex sectors than ‘residential building construction’, the new input-output-based hybrid analysis method derived here allows available process analysis data to be integrated with the input-output data in a comprehensive framework. The proportion of the result comprising the more reliable process analysis data can be calculated and used as a measure of the reliability of the result for that product or part of the product being analysed (for example, a building material or component). To ensure that future applications of the new input-output-based hybrid analysis method produce reliable results, new sources of process analysis data are required, including for such processes as services (for example, ‘banking’) and processes involving the transformation of basic materials into complex products (for example, steel and copper into an electric motor). However, even considering the limitations of the demonstration described above, the new input-output-based hybrid analysis method developed achieved the aim of the thesis: to develop a new embodied energy analysis method that allows reliable process analysis data to be integrated into the comprehensive, yet unreliable, input-output framework. Plain language summary Embodied energy analysis comprises the assessment of the direct and indirect energy requirements associated with a process. For example, the construction of a building requires the manufacture of steel structural members, and thus indirectly requires the energy used directly and indirectly in their manufacture. Embodied energy is an important measure of ecological sustainability because energy is used in virtually every human activity and many of these activities are interrelated. This thesis is concerned with the relationship between the completeness of embodied energy analysis methods and their reliability. However, previous industry-based methods, while reliable, are incomplete. Previous national statistical methods, while comprehensive, are a ‘black box’ subject to errors. A new method is derived, involving the decomposition of the comprehensive national statistical model into components that can be modified discretely using the more reliable industry data, and is demonstrated for an individual building. The demonstration failed to integrate enough industry data into the national statistical model, due to the unexpected complexity of the national statistical data and the lack of available industry data regarding energy and non-energy product requirements. These unique findings highlight the flaws in previous methods. Reliable process analysis and input-output data are required, particularly for those processes that were unable to be examined in the demonstration of the new embodied energy analysis method. This includes the energy requirements of services sectors, such as banking, and processes involving the transformation of basic materials into complex products, such as refrigerators. The application of the new method to less complex products, such as individual building materials or components, is likely to be more successful than to the residential building demonstration.