Supply-use framework for international environmental policy analysis
ten Raa,T. Shestalova,V.
ten Raa,T.
Shestalova,V.
Abstract
The technical variation between countries in the production of goods and services, in terms of not only input coefficients, but also emission coefficients, creates scope for international trade to reduce environmental pressures. For this purpose we extend the theory of trade and the environment as to accommodate technical variation between countries in production and emissions. We use and steer close to the extended input and output tables, which include emission data. By treating environmental standards analogous to capital and labor capacity constraints, the aggregation problem for economic and environmental measures gets the same format as the well-understood aggregation problem for labor and capital. In a pilot application we determine the gains to free trade in products and emission permits.
Description
Date
2015
Journal Title
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Volume Title
Publisher
Research Projects
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Keywords
environmental input-output accounts, environmental policy, multi-economy systems, international trade, Q56 - Environment and Development ; Environment and Trade ; Sustainability ; Environmental Accounts and Accounting ; Environmental Equity ; Population Growth, Q51 - Valuation of Environmental Effects, F18 - Trade and Environment, D57 - Input–Output Tables and Analysis, D58 - Computable and Other Applied General Equilibrium Models
Citation
ten Raa, T & Shestalova, V 2015, 'Supply-use framework for international environmental policy analysis', Economic Systems Research, vol. 27, no. 1, pp. 77-94. https://doi.org/10.1080/09535314.2014.922461