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Economics, thermodynamics and process analysis

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Explicit process analysis can be integrated, in principle, with either CGE (Computable General Equilibrium) or I-O (Input-Output) models. This hybrid scheme provides a natural means of satisfying physical constraints, especially the first and second laws of thermodynamics. Process analysis is really the only avaible tool for constructing plausible alternative future I-O tables, and generating materials/energy and waste emissions coefficients. Explicit process analysis also helps avoid several characteristic problems of either CGE or I-O models, viz. (1) aggregation errors (2) inability to handle arbitrary combinations of co-product and co-input relationships and (3) inability to reflect certain non-linearities such as internal feedback loops

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