Measuring The Economic Impacts Of Reducing Environmentally Damaging Production Activities

Paul B. Siegel and Thomas G. Johnson
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Paul B. Siegel: University of Tennessee, Knoxville
Thomas G. Johnson: Virginia Tech

The Review of Regional Studies, 1993, vol. 23, issue 3, 237-254

Abstract: The joint production of desirable economic goods and undesirable environmental by-products is not uncommon. An expedient means of reducing undesirable by-products is to reduce production of the desired good. This paper addresses the use of input-output models for analyzing the economic impacts of environmental programs that intentionally reduce output and compensate some economic agents for associated income and employment losses. The objective of this paper is to specify some basic principles that are essential for the economic impact analysis of such programs when using input-output models and to demonstrate how neglect of these principles may lead to ambiguous results for policy analysis.

Date: 1993
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