Extracting Tree-like Structure from Complex Production Network Based on Structural Path Analysis

Abstract

The structure of a production network involved in supplying a given product may generally be considered as quite complex. The transformation of these networks into a tree-like structure, therefore, offers an effective tool for better understanding how the environmental impact associated with a product propagates throughout the entire economy. This may be useful in assessments regarding supply-chain GHG management like the Scope 3 Standard of the GHG Protocol Initiative. However, extracting a tree from the production network described by an input-output table (IOT) is not straightforward because the network contains feedback loops. We have thus developed a new method to extract and visualize a tree-like structure entangled in a production network, based on structural path analysis. Moreover, we applied the method to IOTs to exemplify its utility.