A goal programming approach for a joint design of macroeconomic and environmental policies: a methodological proposal and an application to the spanish economy

Francisco J. André (), M. Alejandro Cardenete () and Carlos Romero ()
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Carlos Romero: Departamento de Economía y Gestión Forestal, Escuela Tecnica Superior de Ingenieros de Montes, Universidad Politécnica de Madrid.

No 07.12, Working Papers from Universidad Pablo de Olavide, Department of Economics

Abstract: Economic policy needs to pay more attention to environmental issues. This calls for the development of methodologies capable of incorporating environmental as well as macroeconomic goals in the design of public policies. In view of this, this paper proposes a methodology based upon Simonian satisficing logic implemented with the help of goal programming models to address the joint design of macroeconomic and environmental policies. The methodology is applied to the Spanish economy, where a joint policy is elicited, taking into account macroeconomic goals (economic growth, inflation, unemployment, public deficit) and environmental goals (CO2, NOx and SOx emissions) within the context of a computable general equilibrium model.

Keywords: Environmental policies; goal programming; macroeconomic policies; computable general equilibrium model; multiple criteria decision making; satisficing logic. (search for similar items in EconPapers)
JEL-codes: C61 C68 Q58 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene, nep-env and nep-mac
Date: 2007-06
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Persistent link: http://EconPapers.repec.org/RePEc:pab:wpaper:07.12

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