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Estimation of SAM for India: An Application for India’s Energy Transition Targets

Author

Listed:
  • Chetana Chaudhuri

    (Chetana Chaudhuri (corresponding author) is a Fellow at the National Council of Applied Economic Research (NCAER), New Delhi, India. E-mail: cchaudhuri@ncaer.org)

  • Devender Pratap

    (Devender Pratap is a Senior Fellow at the National Council of Applied Economic Research (NCAER), New Delhi, India. E-mail: dpratap@ncaer.org)

  • Sanjib Pohit

    (Sanjib Pohit is a Professor at the National Council of Applied Economic Research (NCAER), New Delhi, India. E-mail: @ncaer.org)

Abstract
The social accounting matrix (SAM) for India was historically constructed based on the input–output table (IOT). However, since 2011–2012, the Government of India has been publishing the supply–use table, instead of the IOT. While the erstwhile IOT, published by the Government of India, had the same number of products and industries, the supply–use table provides one ‘supply matrix’ and one ‘use matrix’, each of which is a rectangular table with 140 products and 66 industries (for 2018–2019). Converting the supply–use table to a square IOT and subsequently extending it to SAM require the utilisation of various data sources, numerous steps and adjustments. Despite the usefulness of both IO and SAM matrices in macroeconomic policy design, not much literature is available on these. This study aims to bridge the gap by constructing IOT and SAM for India from the supply–use table incorporating information from many other sources and describing the method of construction of the matrices. Our IO and SAM also focus on various energy sectors, including different sources of power generation, biomass and so on, and disaggregate energy-intensive sectors like cement or aluminium, considering the immense usefulness of the energy-extended macro-structure to the research of energy and environment policies. The study focuses on the construction of a 59 × 59 SAM for India, with the base year of 2021–2022 incorporating three factors of production and ten categories of households. As an application of the newly constructed SAM, we have analysed the employment implication of India’s Nationally Determined Contribution emission commitments. JEL Codes: E16, C67, D57

Suggested Citation

  • Chetana Chaudhuri & Devender Pratap & Sanjib Pohit, 2024. "Estimation of SAM for India: An Application for India’s Energy Transition Targets," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 18(1-2), pages 74-133, February.
  • Handle: RePEc:sae:mareco:v:18:y:2024:i:1-2:p:74-133
    DOI: 10.1177/00252921241284278
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    References listed on IDEAS

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    1. Hartono, Djoni & Resosudarmo, Budy P., 2008. "The economy-wide impact of controlling energy consumption in Indonesia: An analysis using a Social Accounting Matrix framework," Energy Policy, Elsevier, vol. 36(4), pages 1404-1419, April.
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    4. Manuel Alejandro Cardenete & Joaquin Garcia-Tapial, 2019. "Assessing the economic impact of entrepreneurship on a regional economy using social accounting matrices: the case of Andalusia," Applied Economics Letters, Taylor & Francis Journals, vol. 26(16), pages 1373-1377, September.
    5. Pal, Barun Deb & Pohit, Sanjib, 2014. "Environmentally Extended Social Accounting Matrix for Climate Change Policy Analysis for India," Journal of Regional Development and Planning, Rajarshi Majumder, vol. 3(1), pages 61-75.
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    More about this item

    Keywords

    Social Accounting Matrix; Input–Output Table; Supply–Use Table; SAM Multiplier; India; Energy;
    All these keywords.

    JEL classification:

    • E16 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Social Accounting Matrix
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

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