Analyzing The Iron Flow Between China’s Industries Based On The WIO-MFA Model

Since the mid-eighteenth century when Industrial Revolution broke out in the UK, the world has begun to enter the industrial age after experienced long after farming civilization. With the gradual deepening of the industrial revolution, the world has also entered the era of resource consumption. In the process of industrialization, the steel industry has contributed a huge role in the development of modern civilization, which also makes the steel industry began to consume large amounts of iron resources. Entering the twenty-first century, the world’s mineral resources, especially the traditional resources such as iron, coal, oil, etc., are beginning to face the embarrassment of the gradual depletion of resources. Prior has yet to find a sufficient number of alternative energy, thinking about how to make the traditional resources (specifically in this article refers to iron resources) enter a recycling model has become an increasingly important issue. And in order to make the iron resource enter a recycling model, an important prerequisite is to clear iron resources’flow path between the different industries. Therefore, this paper is beginning to compose based on the background above mentioned.Since China’s industrialization process is accelerating currently, the development of industrialization is bound to consume a large amount of iron resources. Therefore, the purpose of this paper is to analyze the iron flow of China by compiling an input output table of iron (FeIO) based on the methodology of WIO-MFA. The WIO-MFA model was originally proposed in 2005 by the Japanese economist Shinichiro Nakamura and Kenichi Nakajima, and WIO-MFA model has been successfully applied in Japen subsequently. The FeIO shows the iron flows across sectors of virgin resources, materials, products, and secondary resources. To analyze the flow of iron in particular between different industries, an important prerequisite is to obtain an FeIO with higher degrees of resolution. Therefore, in order to obtain an FeIO with a high degree of resolution, this paper introduces a non-survey methods of compilation, and this compilation mode is based on the currently available 10 tables. These input-output tables are released after rigorous examination by the national statistical offices. Therefore, this ensures that the FeIO which we compiled has a high degree of resolution.After successful compilation of the Chinese FeIO of 2007, the next goal of this paper is to analyze the iron flows among the Chinese different sectors of the national economy. To demonstrate the material flow embodied in the FeIO, a new approach called main route analysis is proposed to draw a Sankey diagram for the most relevant route of iron flow for any given start point and end point. Meanwhile, the main route analysis is expected to reveal the degree of fabrication.