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Assessing the Employment Impacts of Environmental and Natural Resource Policy

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  • Peter Berck
  • Sandra Hoffmann

Abstract

This paper provides an introductory guide for environmental andresource economists to methods of assessing the impact of environmentaland natural resource policy on employment. It examines five basicapproaches to evaluating the effect of a policy action on employment:1) supply and demand analysis of the affected sector; 2) partialequilibrium analysis of multiple markets; 3) fixed-price, generalequilibrium simulations (input-output (I-O) and social accounting matrix (SAM) multiplier models); 4) non-linear, general equilibriumsimulations (Computable General Equilibrium (CGE) models); and 5) econometric estimation of the adjustment process, particularly timeseries analysis. The basic modeling structure and data requirementsfor each of these approaches are described. Simple examples of theirapplication to evaluation of environmental and natural resourcepolicy are developed and the relative merits and applicability of each are discussed. Copyright Kluwer Academic Publishers 2002

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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 22 (2002)
Issue (Month): 1 (June)
Pages: 133-156

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Handle: RePEc:kap:enreec:v:22:y:2002:i:1:p:133-156

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Web page: http://www.springerlink.com/link.asp?id=100263

Related research

Keywords: computable general equilibrium; employment impact; input-output; natural resource policy; social accounting matrix;

References

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  1. Hoffmann, Sandra & Berek, Peter & Costello, Christopher & Fortmann, Louise, 2000. "Poverty and Employment in Timber-Dependent Counties," Discussion Papers dp-00-52, Resources For the Future.
  2. Banerjee, Anindya & Hendry, David F & Mizon, Grayham E, 1996. "The Econometric Analysis of Economic Policy," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(4), pages 573-600, November.
  3. Andrew C. Krikelas, 1992. "Why regions grow: a review of research on the economic base model," Economic Review, Federal Reserve Bank of Atlanta, issue Jul, pages 16-29.
  4. Jorgenson, Dale W. & Wilcoxen, Peter J., 1990. "Intertemporal general equilibrium modeling of U.S. environmental regulation," Journal of Policy Modeling, Elsevier, vol. 12(4), pages 715-744.
  5. Rose, Adam, 1995. "Input-output economics and computable general equilibrium models," Structural Change and Economic Dynamics, Elsevier, vol. 6(3), pages 295-304, August.
  6. repec:fth:guelph:1 is not listed on IDEAS
  7. Mark D. Partridge & Dan S. Rickman, 1998. "Regional Computable General Equilibrium Modeling: A Survey and Critical Appraisal," International Regional Science Review, , vol. 21(3), pages 205-248, December.
  8. Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-71, August.
  9. David Abler & Adrián Rodríguez & James Shortle, 1999. "Parameter Uncertainty in CGE Modeling of the Environmental Impacts of Economic Policies," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 14(1), pages 75-94, July.
  10. Robinson, Sherman & Roland-Holst, David W., 1988. "Macroeconomic structure and computable general equilibrium models," Journal of Policy Modeling, Elsevier, vol. 10(3), pages 353-375.
  11. Xiaoming Pan & Steven Kraines, 2001. "Environmental Input-Output Models for Life-Cycle Analysis," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 20(1), pages 61-72, September.
  12. McKitrick, Ross R., 1998. "The econometric critique of computable general equilibrium modeling: the role of functional forms," Economic Modelling, Elsevier, vol. 15(4), pages 543-573, October.
  13. Brown, Scott J. & Coulson, N. Edward & Engle, Robert F., 1992. "On the determination of regional base and regional base multipliers," Regional Science and Urban Economics, Elsevier, vol. 22(4), pages 619-635, November.
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Citations

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Cited by:
  1. Patriquin, Mike N. & Wellstead, Adam M. & White, William A., 2007. "Beetles, trees, and people: Regional economic impact sensitivity and policy considerations related to the mountain pine beetle infestation in British Columbia, Canada," Forest Policy and Economics, Elsevier, vol. 9(8), pages 938-946, May.
  2. Kaplan, Jonathan D. & Johansson, Robert C., 2003. "When The !%$? Hits The Land: Implications For Us Agriculture And Environment When Land Application Of Manure Is Constrained," 2003 Annual meeting, July 27-30, Montreal, Canada 22002, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Johansson, Robert C. & Kaplan, Jonathan D., 2003. "Manure Stew - U.S. Ingredients: Carrots, Sticks, and Water," 2003 Annual meeting, July 27-30, Montreal, Canada 21900, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2008. "Distributional impact of global warming environmental policies: A survey," Cahiers de recherche 08-14, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
  5. Tommy Lundgren, 2009. "Environmental Protection and Impact on Adjacent Economies: Evidence from the Swedish Mountain Region," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 40(3), pages 513-532.
  6. Sporri, C. & Borsuk, M. & Peters, I. & Reichert, P., 2007. "The economic impacts of river rehabilitation: A regional Input-Output analysis," Ecological Economics, Elsevier, vol. 62(2), pages 341-351, April.
  7. Scott, Michael J. & Roop, Joseph M. & Schultz, Robert W. & Anderson, David M. & Cort, Katherine A., 2008. "The impact of DOE building technology energy efficiency programs on U.S. employment, income, and investment," Energy Economics, Elsevier, vol. 30(5), pages 2283-2301, September.
  8. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2008. "Intra-Country Distributional Impact of Policies to Fight Climate Change: A Survey," Working Papers ECARES 2008_038, ULB -- Universite Libre de Bruxelles.
  9. Dandres, Thomas & Gaudreault, Caroline & Tirado-Seco, Pablo & Samson, Réjean, 2012. "Macroanalysis of the economic and environmental impacts of a 2005–2025 European Union bioenergy policy using the GTAP model and life cycle assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(2), pages 1180-1192.
  10. Dorothee Boccanfuso & Antonio Estache & Luc Savard, 2011. "The Intra-country Distributional Impact of Policies to Fight Climate Change: A Survey," Journal of Development Studies, Taylor & Francis Journals, vol. 47(1), pages 97-117.

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