From single to joint-production under rectangular technology choice

Abstract

Unlike conventional input–output impact analyses based on matrix inversion, the optimisation-based rectangular-choice-of-technology model (RCOT) by Duchin & Levine [(2011). Economic Systems Research. https://doi.org/10.1080/09535314.2011.571238] allows for choice among multiple technologies along a sustainable development narrative. However, their model, as first proposed, does not utilise a supply-use framework in order to properly capture the issues of joint-production. That is unfortunate for two reasons: Joint-production is the general case and is, moreover, interesting from an efficiency perspective. Using single-production data instead requires re-allocating by-products, involving a range of assumptions. This concerns, by design, the utilisation of by-products as well as reuse and recycling. Here, we explore the role of these assumptions and the possibility of using production data as-is, where technologies typically produce multiple co-products. Despite fewer assumptions, the joint-production model may not always align with the study goals.