This paper proposes a spatial structural decomposition analysis to measure the effects of the changes in intra-and inter-country linkages on the embodied energy demand in the concerned country. For the empirical analysis, we have used the China-Japan inter-country input-output tables for 1985 and 1990, expressed in constant prices of 1990. The empirical results reveal that (1) at least for the period between 1985 and 1990, the effects of the non-competitive input structural changes in China on

more »

... he primary energy requirements of Japan were negligible, and (2) the contribution of the Japanese final demand shifts on the total change in Chinese primary energy demand was 40 times larger than that of the Chinese final demand shifts on the primary energy requirements of Japan. The Japanese policy makers should concentrate on the energy impacts of the changes in the domestic production structure rather than the changes in the Chinese production structure. and inamura@plan.civil.tohoku.ac.jp. An early version of this paper was prepared for the 14th International Conference on Input-Output Techniques, held in Montréal, Canada, on October 10-15, 2002. We thank the IDE staff for their helpful comments and suggestions regarding the purchasing power parities (PPPs) and the China-Japan inter-country input-output tables for 1985 and 1990. We also gratefully acknowledge many helpful comments and suggestions of two anonymous reviewers and Professor Erik Dietzenbacher, all of which improved the paper substantially. All errors are ours. , and are defined (in Yen) for Japan. JJ A J f J q JJ Ψ Note that the superscripts C and J denote China and Japan respectively. The superscripts CC and JJ stand for the domestic circular flow in China and in Japan respectively. 8 J JJ J JJ n J C 1 C 2 J J 17,939