Measuring energy linkages with the hypothetical extraction method: An application to Spain

Efficiency improvements in energy use are nowadays one of the main concerns of policy makers and plans of action have been designed to achieve targets such as those of the Kyoto protocol. The measure of their success will depend on the degree that these plans spread through the system. In this light the inter-industry linkages turn out to be quite significant for the effectiveness of policies. We propose in this paper an adaptation of the hypothetical extraction method to measure the role of energy and non-energy efficiency gains in an interconnected, multisectorial economy while relating the results to the Rebound effects literature.