Gasoline: Commodity versus industry

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lgenova

• February 07, 2013 00:58

Hi, Sorry about this basic question. I am dealing with tourists spending money on [u]gasoline[/u]. In the example in my IMPLAN workbook (CS12-A), you recommend inputting gas expenditures as a commodity change(#3326), then applying retail margins, but you mention that such an analysis could also be done as an industry change (presumably, #326). I tested the difference of running $1 million in expenditures on gas as either a commodity or industry, and the results are different, with the commodity output being $0.5 million for industry change, but only $0.2 million for the commodity change. Why would this be so? Is one of these options better than another? Thanks for any thoughts.

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  Candi Clouse

  • August 31, 2020 12:41

  Here is the updated article that walks you through choosing an Industry or a Commodity Event.

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  IMPLAN Support

  • February 07, 2013 01:50

  When you run an analysis as a commodity, it gets converted into an industry based impact. Industries make more than one commodity and what is likely happening is that the commodity impact gets translated to an industry impact and some of the industries don't exist in the model. You can ask what their region is and try it yourself to see what is happening. Typically, it's better to run an industry based impact so you don't get that commodity to industry conversion issue.

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