We are attempting to model investments along the electric vehicle supply chain. As an illustrative example consider the following modeling approach: $1M to '333 storage battery manufacturing', $5M to '340 Automobile Manufacturing', and $2M to '402 - Retail - Motor Vehicle Dealers'. We are concerned about double counting the economic impacts.
For example, automobile manufacturing has some battery commodity demand. If we gave $5M to automobile manufacturing, would the model subsequently ramp up the manufacturing of batteries such that more battery components are required. In other words, is the supply chain reactionary such that a change to a downstream industry changes the behavior of an upstream industry.
It is also our understanding that in this illustrative example, we would need to margin the automobile manufacturing so that it does not double count retail. Is this correct?
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