Sensitivity Analysis as a Tool to assess Energy-Water Nexus in India

Friday, December 15, 2017 - 13:55
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Rapid urbanization, population growth and related structural changes with-in the economy of a developing country act as a stressor on energy and water demand, which forms a well-established energy-water nexus. Energy-water nexus is thoroughly studied at various spatial scales viz. city level, river basin level and national level- to guide different stakeholders for sustainable management of energy and water. However, temporal dimensions of energy-water nexus at national level have not been thoroughly investigated because of unavailability of relevant time-series data. In this study we investigated energy-water nexus at national level using environmentally-extended input-output tables for Indian economy (2004-2013) as provided by EORA database. Perturbation based sensitivity analysis is proposed to highlight the critical nodes of interactions among economic sectors which is further linked to detect the synergistic effects of energy and water consumption. Technology changes (interpreted as change in value of nodes) results in modification of interactions among economic sectors and synergy is affected through direct as well as indirect effects. Indirect effects are not easily understood through preliminary examination of data, hence sensitivity analysis within an input-output framework is important to understand the indirect effects. Furthermore, time series data helps in developing the understanding on dynamics of synergistic effects. We identified the key sectors and technology changes for Indian economy which will provide the better decision support for policy makers about sustainable use of energy-water resources in India.

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