An integrated IO and CGE approach to analysing changes in environmental trade balances

Michelle Gilmartin, Peter McGregor, John Swales () and Karen Turner

No 2011-04, Stirling Economics Discussion Papers from University of Stirling, Division of Economics

Abstract: Input-output (IO) tables and demand-driven multiplier techniques are absolutely appropriate for conventional pollution attribution (accounting) analyses as they provide all the required information on pollution embodied in intersectoral interactions and interregional trade flows. However, as a model of how the economy adjusts in response to a marginal change in activity, IO is unlikely to be appropriate as it is only a very special case of general equilibrium models. We propose an integrated IO and computable general equilibrium (CGE) approach, with CGE analysis of the impacts of a change in activity and model results used to inform an IO attribution analysis of pollution embodied in interregional trade flows before and after the change is introduced.

Keywords: Regional CGE modelling; Interregional input-output; CO2 trade balance; Environmental attribution (search for similar items in EconPapers)
Date: 2011-03
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Citations: View citations in EconPapers (1)

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http://hdl.handle.net/1893/7144

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Journal Article: An integrated IO and CGE approach to analysing changes in environmental trade balances (2012)
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