BIOBASED ECONOMY

Glossary of Terms

Direct: It is one or more production changes or expenditures made by producers/consumers as a result of an activity or policy.

Indirect: Indirect effects are the business to business purchases in the supply chain taking place in the region that stem from the initial industry input purchases.

Induce: Induced effects are the values stemming from household spending of Labor Income, after removal of taxes, savings, and commuter income. 

Value Added: The gross output of an industry or a sector less its intermediate inputs; the contribution of an industry or sector to gross domestic product (GDP). Value added by industry can also be measured as the sum of compensation of employees, taxes on production and imports less subsidies, and gross operating surplus.