The economy and energy supply system of any jurisdiction are linked in a complex way, forming direct and indirect connections among different sectors of the economy. The objective of this research project is to develop a hybrid energy input output (EIO) model of the Canadian economy to provide a systematic framework to estimate the embodied energy of products and also to understand the structural relationship between energy systems and the general economy.
The EIO model was developed by extending the economic input-output model of the Canadian economy developed and maintained by Statistics Canada. The model is capable of producing useful information to answer energy policy questions such as estimation of embodied energy of goods and services, energy intensity of consumption decisions, and energy intensity of trade. This paper presents the EIO framework and details of implementing an EIO model of the Canadian economy. Some illustrative results, a scenario forecast based on current greenhouse gas policies and a discussion of the strengths and limitations of the model are also presented.