Value Added definition

[FlorianLeblancDr]

Hi @IAMconsortium/common-definitions-macro-economy

I have a few issues regarding the Value Added variables.

First level of disaggregation: naming

In previous template the disaggregation was Agriculture|Industry|Commercial
I suggest to follow the economic literature going to Agriculture|Industry|Services, Commercial being part of Services:

https://github.com/IAMconsortium/common-definitions/blob/9b964dd199298b0239d8e8bc8e067cb39ebba85c/definitions/variable/macro-economy/tag_econ_sectors.yaml

Added Value definition

I think the definition can be improved, regarding the following:
labor and capital income
labor and capital income including taxes on labor and capital income
labor and capital income plus all government taxes

The later definition can not be easily split at the sectoral level, in the sens than taxes are not only applied from the production side (e.g., tax on the final product). However, the sum of the later is exactly the definition of GDP.
So should we also add an extra Value Added variable so that the sum equals GDP?

[FlorianLeblancDr]

A comment from @volker-krey (made here) :

Dear all, @danielhuppmann made me aware of this discussion. Regarding the Value Added variables, I wanted to mention that as part of the AR6 National Scenario call, we revised those variables and actually included ISIC sectors in the definitions to reduce ambiguity and improve consistency with statistical data. Those definitions can be found on the variable_definitions sheet of the national data template (https://data.ene.iiasa.ac.at/ar6-scenario-submission/static/files/national.zip), but let me paste the Value Added variables in below. Hope this is useful.

Value Added | billion US$2010/yr | Total value added
Value Added|Agriculture | billion US$2010/yr | Value added of agriculture, forestry and fishing (ISIC Rev4 Divisions 01-03)
Value Added|Industry | billion US$2010/yr | Value added of industry (ISIC Rev4 Divisions 05-43)
Value Added|Industry|Mining | billion US$2010/yr | Value added of mining and quarrying (ISIC Rev4 Divisions 05–09)
Value Added|Industry|Manufacturing | billion US$2010/yr | Value added of manufacturing (ISIC Rev4 Divisions 10–33)
Value Added|Industry|Water | billion US$2010/yr | Value added of water supply; sewerage, waste management and remediation activities (ISIC Rev4 Divisions 36–39)
Value Added|Industry|Construction | billion US$2010/yr | Value added of construction (ISIC Rev4 Divisions 41–43)
Value Added|Industry|Manufacturing|Steel | billion US$2010/yr | Value added of manufacturing (ISIC Rev4 Classes 2410, 2431)
Value Added|Industry|Manufacturing|Cement | billion US$2010/yr | Value added of manufacturing (ISIC Rev4 Divisions 2394)
Value Added|Industry|Manufacturing|Chemicals | billion US$2010/yr | Value added of manufacturing (ISIC Rev4 Divisions 20)
Value Added|Industry|Manufacturing|Light Manufacturing | billion US$2010/yr | Value added of manufacturing (ISIC Rev4 Divisions 10–16, 18-23 with exception of Class 2394, 25-33)
Value Added|Industry|Manufacturing|Pulp and Paper | billion US$2010/yr | Value added of manufacturing (ISIC Rev4 Divisions 17)
Value Added|Industry|Manufacturing|Non-ferrous Metals | billion US$2010/yr | Value added of manufacturing (ISIC Rev4 Classes 2420, 2432)
Value Added|Industry|Energy | billion US$2010/yr | Value added of energy (ISIC Rev4 Divisions 05, 06, 19, 35, Group 091 and Classes 0892 and 0721)
Value Added|Industry|Energy|Electricity and Gas | billion US$2010/yr | Value added of electricity, gas, steam and air conditioning supply (ISIC Rev4 Division 35)
Value Added|Services | billion US$2010/yr | Value added of services (ISIC Rev4 Divisions 45-99)
Value Added|Services|Transportation | billion US$2010/yr | Value added of transportation and storage (ISIC Rev4 Divisions 49–53)
Value Added|Services|Public Administration | billion US$2010/yr | Value added of public administration and defence; compulsory social security (ISIC Rev4 Division 84)
Value Added|Services|Other Services | billion US$2010/yr | Value added of other services (ISIC Rev4 Divisions 45-99 other than 49-53 or 84)