An Application of the Integrated Economic-Environmental Modelling Framework to Guatemala's Forest and Fuelwood Sector

Onil Banerjee, Martín Cicowiez, Renato Vargas and Mark Horridge

Centre of Policy Studies/IMPACT Centre Working Papers from Victoria University, Centre of Policy Studies/IMPACT Centre

Abstract: This paper develops and operationalizes the Integrated Economic-Environmental Modelling (IEEM) platform which integrates environmental data organized under the first international standard for environmental-economic accounting with a powerful economy-wide modelling approach. IEEM enables the ex-ante economic analysis of public policies and investment on the economy and the environment in a quantitative, comprehensive and consistent framework. IEEM elucidates the two-way interrelationships between the economy and environment, considering how economic activities depend on the environment as a source of inputs and as a sink for its outputs. In addition to standard economic impact indicators such as gross domestic product, income and employment, IEEM generates indicators that describe policy impacts on the use of environmental resources, wealth and environmental quality which together determine prospects for future economic growth and well-being. To illustrate the analytical capacity of IEEM, the model is calibrated with Guatemala's environmental-economic accounts and applied to analysis of its forest and fuelwood sector where negative health and environmental impacts arise from inefficient household fuelwood use.

Keywords: ex-ante economic impact evaluation; system of environmental-economic accounting; computable general equilibrium model; system of national accounting; economic and environmental indicators; wealth; natural capital; ecosystem services (search for similar items in EconPapers)
JEL-codes: D58 Q56 (search for similar items in EconPapers)
Date: 2017-05
New Economics Papers: this item is included in nep-env
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Citations: View citations in EconPapers (1)

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