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Question A (2 points) Briefly introduce the reductionism thinking and systems thinking paradigms. What is their role in Sustainable Development? Question B (4 points) Introduce the concepts of Production-based and Consumption-based accounting. Considering a symmetric Input- Output framework, derive the analytical formulations of direct environmental transactions and products footprints. Problem A (8 points) A production system composed by two technologies, namely “Extraction of fossil fuels” and “Oil refining”. The former extracts crude oil and delivers it to the latter, while producing “Natural gas” as by product. The Oil refining process turns crude oil into oil products, namely “Diesel” and “Gasoline”. In a defined time span, the following transactions are recorded: - The system delivers 35 liters of diesel fuel, 20 liters of gasoline and 70 kg of natural gas to final consumers. - Each technology consumes Natural gas for industrial heating purposes, respectively 20 kg consumed by the Oil refining, and 5 kg by the Extraction of fossil fuels. - Crude oil extraction technology extracts 100 kg of crude oil from the environment, while releasing 8 tons of CO2 to the environment; Oil refining technology releases 0.5 tons of CO2. It is requested to: - Draw the Reference Production System and define the number of technologies and products. How the by- products of the two technologies could be classified and why? (2 points) - Translate the RPS into a Supply and Use Table and calculate the total product demand (Q) and total technology activity (X). (2 points) - Calculate coefficients matrices, specifying and justifying the selected technology assumption. How many kg of CO2 are released for every kg of Crude oil extracted? (2 points) - Based on Leontief quantity model, derive…