Allocation of Energy Supplies Among Economic Sectors: An Application of Interindustry and Multiobjective Analysis

Ambrose Goicoechea
Thomas R. Harris

DOI: 10.2190/Y9LA-PWXW-MG9R-0809


Trade-offs between regional economic development and resource use is a question often confronting local decision makers. A multiobjective model combining linear programming and interindustry analysis is used in this article to derive levels of economic activity that maximize regional income and employment while simultaneously minimizing regional energy use. Non-dominated solutions are generated which relate regional economic activity to regional energy use. Economic sector production levels for different non-dominated solutions are derived. A suggested procedure for allocation of scarce energy resources among competing economic sectors using non-dominated solutions is presented.

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