Revert "derive an M matrix for IEF models"#323
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The illogical argument before was to validate |
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Adding @jvendries in case he wants to weigh in. |
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I'll go ahead and revert this (#317) and start the PR with the new approach |
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I disagree with this approach now. For models with IFs we should rather derive them with a simplified version of equations 5 and 6 in the Estimating embodied environmental flows ..report
What should be done is removing the final demand term which is for scaling, or the equivalent of replacing y_d with an identity vector
The first term is the direct and indirect flows (domestic emissions only) per dollar associated with domestic total requirements.
The second term are the embodied flows from the use of imports by industries to make their commodities both directly (from
A_m) and indirectly (by scaling it to total requirements usingL_d)The third term which is in Eq 7 (not pictured above ) only applies to imports used directly by final consumers which is irrelevant to an M matrix which is rather direct and indirect flows per dollar produced.
Combining them should provide the correct M.
I am suggesting to revert this PR and to create a new branch to implement this new method for an M, but this is up to you to determine the best way to go about this.