98 developed for the alternative scenarios by considering the price induced input factor substitution, which includes the following processes First, a nested structure for I O coefficients is identifi[.]
98 developed for the alternative scenarios by considering the price-induced input-factor substitution, which includes the following processes First, a nested structure for I-O coefficients is identified based on the typical nesting structure of I-O coefficients, as illustrated in Figure 4-4, and functional forms are identified, which primarily involve the Leontief and CES methods Figure 4-5: Typical Nesting Structure of I-O Coefficients Second, values are assumed for elasticity of substitution, which are primarily based on the total sectoral output X estimated from Section 4.4.2.1; a multi-tier estimation procedure is used to update the individual components in the I-O table Finally, ‘satellite’ accounts are established for the future scenario In this step, the results obtained from the alternative scenarios are compared (see step & step 4) to those derived from the baseline scenario (see step and step 2) to assess the impacts of technological change These significant changes are used to reassess the effectiveness of policy choices as well as the modifications in technologies related to food, water and energy across the given indicators Establish a nested CES function Additionally, the most obvious factor in determining economic value changes involves the impact of price sectoral changes in the updated calculation Therefore, the nested CES function method is deployed in the following four following steps