TY - JOUR
T1 - A method for economic input-output social impact analysis with application to U.S. advanced manufacturing
AU - Richter, Justin S.
AU - Mendis, Gamini P.
AU - Nies, Larry
AU - Sutherland, John W.
N1 - Funding Information:
This research was generously supported by the Fehsenfeld Family Endowment and the NSF IGERT on Sustainable Electronics ( DGE 1144843 ). Additional thanks extended to Dr. Angel Aguiar of the Purdue University Agricultural Economics department and the Global Trade Analysis Project (GTAP) for constructive guidance and comments. Declaration of interests: none.
Publisher Copyright:
© 2018 Elsevier Ltd
PY - 2019/3/1
Y1 - 2019/3/1
N2 - Industrial sustainability performance has, up until recently, been mainly based on a combination of economic and environmental measures. The social dimension of sustainability performance remains largely unknown. The lack of understanding of social performance, i.e., how stakeholder needs are impacted by industrial production, limits the capacity of decision makers to pursue fully informed choices. Fortunately, large quantities of economic and social data exist in the public domain. The vast economic and social data enable the creation of industry-related social impact metrics that can describe how industry directly affects society. However, assessing social impacts in an economy requires a multidisciplinary modeling approach. The proposed method, economic input-output social impact assessment, is developed to integrate economic production with two new social impact metrics based on employee/worker-needs: Cost Of Injuries identifies employee safety/security needs, and Employees below a Living Wage identifies worker basic needs. The model is applied using a case study that introduces the economically important and technologically innovative Advanced Manufacturing cluster of industries in the United States. In 2012, Advanced Manufacturing represented over 39% of U.S. manufacturing output and 7.8%, or $2.25 trillion. of the U.S. total economic output ranking 6th in the total economy. As a result of the model, Advanced Manufacturing was attributed 8.5%, or $1.3 billion, for the total national social impacts of Cost Of Injuries, ranking 5th in the U.S. economy. Advanced Manufacturing was also attributed 3.5%, or 3 million employees, for the total national social impacts of Employees below a Living Wage, ranking 12th out of the 16 economic sectors studied. The economic input-output social impact assessment method is demonstrated to provide a measurable path forward to evaluate the social performance of industries.
AB - Industrial sustainability performance has, up until recently, been mainly based on a combination of economic and environmental measures. The social dimension of sustainability performance remains largely unknown. The lack of understanding of social performance, i.e., how stakeholder needs are impacted by industrial production, limits the capacity of decision makers to pursue fully informed choices. Fortunately, large quantities of economic and social data exist in the public domain. The vast economic and social data enable the creation of industry-related social impact metrics that can describe how industry directly affects society. However, assessing social impacts in an economy requires a multidisciplinary modeling approach. The proposed method, economic input-output social impact assessment, is developed to integrate economic production with two new social impact metrics based on employee/worker-needs: Cost Of Injuries identifies employee safety/security needs, and Employees below a Living Wage identifies worker basic needs. The model is applied using a case study that introduces the economically important and technologically innovative Advanced Manufacturing cluster of industries in the United States. In 2012, Advanced Manufacturing represented over 39% of U.S. manufacturing output and 7.8%, or $2.25 trillion. of the U.S. total economic output ranking 6th in the total economy. As a result of the model, Advanced Manufacturing was attributed 8.5%, or $1.3 billion, for the total national social impacts of Cost Of Injuries, ranking 5th in the U.S. economy. Advanced Manufacturing was also attributed 3.5%, or 3 million employees, for the total national social impacts of Employees below a Living Wage, ranking 12th out of the 16 economic sectors studied. The economic input-output social impact assessment method is demonstrated to provide a measurable path forward to evaluate the social performance of industries.
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U2 - 10.1016/j.jclepro.2018.12.032
DO - 10.1016/j.jclepro.2018.12.032
M3 - Article
AN - SCOPUS:85059308405
SN - 0959-6526
VL - 212
SP - 302
EP - 312
JO - Journal of Cleaner Production
JF - Journal of Cleaner Production
ER -
