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CO2 emissions and value added change: assessing the trade-off through the macro multiplier approach

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  • Claudio Socci
  • Maurizio Ciaschini
  • Andrea Karim El Meligi

Abstract

Recently, political and scientific debate is strongly focused on issues questioning the economic sustainability of environmental policies at regional level. Following European directives and protocols and in accordance with the principles of sustainable development, the interventions designed by policy makers are required to aim at restructuring the final emissions. In this paper an effort is made to assess a new structure for the final demand which would be able to achieve a composite task: the economic sustainability and the environmental improvement. In this respect, the regional Social Accounting Matrix (SAM), referred to a typical region of the Mediterranean area, the Sardinia, will be integrated with the environmental accounting scheme in order to develop the regional multisectoral extended model. The resulting inverse matrix will be used to identify which composition of the final demand (policy control variable) is consistent with the complex emissions together with a positive variation of the aggregate total output (policy target variable). For this purpose the Macro Multipliers approach, through the use of a bidimensional decision-making index, will allow us to identify the convenient structures for both economic and environmental target and assessing the expected negative trade-off.

Suggested Citation

  • Claudio Socci & Maurizio Ciaschini & Andrea Karim El Meligi, 2014. "CO2 emissions and value added change: assessing the trade-off through the macro multiplier approach," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2014(2), pages 49-74.
    • Handle: RePEc:fan:efeefe:v:html10.3280/efe2014-002004
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    References listed on IDEAS

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    1. Ciaschini, Maurizio & Pretaroli, Rosita & Socci, Claudio, 2011. "Balance, Manhattan norm and Euclidean distance of industrial policies for the US," Structural Change and Economic Dynamics, Elsevier, vol. 22(3), pages 204-226, September.
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    Cited by:

    1. Irfan Ahmed & Claudio Socci & Francesca Severini & Qaiser Rafique Yasser & Rosita Pretaroli, 2018. "The structures of production, final demand and agricultural output: a Macro Multipliers analysis of the Nigerian economy," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(3), pages 691-739, December.
    2. Irfan Ahmed & Claudio Socci & Rosita Pretaroli & Francesca Severini & Stefano Deriu, 2022. "Socioeconomic spillovers of the 2016–2017 Italian earthquakes: a bi-regional inoperability model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(1), pages 426-453, January.

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    More about this item

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • E16 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Social Accounting Matrix
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories

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