Backward and forward linkages in electricity consumption. The influence of supply factors

A higher energy efficiency is a vital component of the decarbonised energy transition. In the current geopolitical context, it also increases the resilience of those economies which do not have meaningful energy resources, particularly in a context of high fossil fuel prices. Identifying the sectors which are mostly responsible for electricity consumption in the production system is relevant to design policies which enhance the efficiency of such consumption. Input-output analysis is an appropriate analytical framework to address this objective, since it allows a deep analysis of the relationships between sectors and between sectors and final demand. Backward and forward effects can be calculated using, respectively, the demand and supply multipliers in the input-output models. Past contributions have not been able to fully capture the electricity consumption of a sector related to its intermediate product demand, including the feedback effects. Therefore, this paper proposes a model which identifies the intersectoral links which are relevant from an electricity consumption point of view, taking into account the total direct and indirect requirements of the products which are used to obtain a final demand and an intermediate demand. This methodology is applied to the Spanish case. The results show that a few sectors concentrate many effects which lead to electricity consumption, suggesting that they should be the focus of energy policies. Policy measures are identified to tackle different effects in distinct types of sectors in order to increase the efficiency in electricity consumption.