# Econometrics and Input-Output Analysis

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Question 1CoalCrudePetroleumProductsHydro-powerNuclear energyelectricityTotalOtherHouseholdsTransportIndustry79613243112241413997.127244158Total final use746478737Transmission losses13.927.821.72net final use7477.9285.8758.72Nuclear power plantsElectric Power PlantsRefineries-18540-156500-48-19474Primary Supply25540133.9248197.8758.72Stock exchangeExportsImports4-5543133.927.8-5688.72Primary Production212481990The final consumption of petroleum products is estimated to be 464 PJ. Considering the loss of energy during transmission of gas to e 3% of the total production, then this figure needs to be inflated by 3% so as to cater for the lost energy, which is 13.92 PJ. To provide this energy in 2019, country X will have to increase its projected imports by 13.92 PJ.
Since 10%\$ of the electricity is expected to be lost during transmission, the total projected energy use is inflated by 10%. Country X will therefore have to increase imported electricity by 3.8 PJ since the extra 4 PJ will be provided by the Nuclear power plant. The nuclear power plant is expected to use all of its output on electricity.The key assumption use in estimating the total demand for energy is that, importing more energy to balance demand and supply is the best conceivable way. Hence all increases lead to an increase in energy imported.Question 2 a)Profit made by the company in the year 2016. Profit= Total sales- Expenses (7.6+0.8) – (3.3+1.6+4) = \$ -0.5 million.b) Value Added by the company for the year 2016. Value Added is calculated asmarketValueofimmideateofacompaniesoutputthevalueofimmideiateinputs. = (7.6 +0.8) - 3.3 = \$5.1 Million,Question 3a)None of the Aboveb)\$ 130bnc)\$ 270bn

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