Looking for the Inverted Pyramid: An Application Using Input-Output Networks

B-Tier
Journal: Ecological Economics
Year: 2020
Volume: 169
Issue: C

Score contribution per author:

0.402 = (α=2.01 / 5 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Herman Daly's view of the economy as an “inverted pyramid” sitting on top of essential raw material inputs is compelling, but not readily visible in monetary data, as the contribution of primary sectors to value added is typically low. This article argues that “forward linkages”, a classical development theory concept capturing the relevance of a sector for downstream activities, is an informative and complementary measure to identify key sectors. Using Input-Output (IO) data from eighteen European countries, we identify mining as the sector with the highest average forward linkages, and confirm the consistency of this result across countries via cluster analysis. By treating IO tables as the adjacency matrix of a directed network, we then build and visualise national inverted pyramid networks, and analyse their structure. Our approach highlights the role of natural resources in providing the necessary inputs to modern European economies.

Technical Details

RePEc Handle
repec:eee:ecolec:v:169:y:2020:i:c:s092180091930624x
Journal Field
Environment
Author Count
5
Added to Database
2026-01-25