IDEAS home Printed from https://ideas.repec.org/a/spr/jecstr/v6y2017i1d10.1186_s40008-017-0083-x.html
   My bibliography  Save this article

Structural change in the Chicago region and the impact on emission inventories in a continuous-time modeling approach

Author

Listed:
  • Kieran Donaghy

    (Cornell University)

  • Clifford R. Wymer

    (Sapienza University of Rome)

  • Geoffrey J. D. Hewings

    (University of Illinois)

  • Soo Jung Ha

    (Korea Research Institute for Human Settlements)

Abstract

Motivated by both the need to model recent structural economic changes and the need to understand better the nature of environmental–economic interactions, this paper introduces a continuous-time regional econometric input–output model for the Chicago economy that can be used to analyze, at disaggregated sectoral and temporal levels, the economic and environmental implications of changes exogenous to the economy. The model’s solution yields estimates of emission inventories, which may be used to analyze environmental implications of various economic changes and policy restrictions. This model is the first integrated economic–environmental model of which we are aware that has been formulated and estimated in continuous time for the regional economy of a metropolitan area. We believe that the model’s formulation will enable it to enjoy greater compatibility with natural science-based models, which share such a formulation and flexibility in projecting future emissions corresponding to alternative future economic scenarios and in evaluating emissions policies relevant to such scenarios.

Suggested Citation

  • Kieran Donaghy & Clifford R. Wymer & Geoffrey J. D. Hewings & Soo Jung Ha, 2017. "Structural change in the Chicago region and the impact on emission inventories in a continuous-time modeling approach," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-28, December.
    • Handle: RePEc:spr:jecstr:v:6:y:2017:i:1:d:10.1186_s40008-017-0083-x
    DOI: 10.1186/s40008-017-0083-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40008-017-0083-x
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40008-017-0083-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hazilla, Michael & Kopp, Raymond J, 1990. "Social Cost of Environmental Quality Regulations: A General Equilibrium Analysis," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 853-873, August.
    2. Dale W. Jorgenson & Peter J. Wilcoxen, 1990. "Environmental Regulation and U.S. Economic Growth," RAND Journal of Economics, The RAND Corporation, vol. 21(2), pages 314-340, Summer.
    3. Thomas Wiedmann & Richard Wood & Jan Minx & Manfred Lenzen & Dabo Guan & Rocky Harris, 2010. "A Carbon Footprint Time Series Of The Uk - Results From A Multi-Region Input-Output Model," Economic Systems Research, Taylor & Francis Journals, vol. 22(1), pages 19-42.
    4. Takayama,Akira, 1985. "Mathematical Economics," Cambridge Books, Cambridge University Press, number 9780521314985.
    5. Lesuis, Piet & Muller, Frederik & Nijkamp, Peter, 1980. "An interregional policy model for energy-economic-environmental interactions," Regional Science and Urban Economics, Elsevier, vol. 10(3), pages 343-370, August.
    6. Wymer, C R, 1972. "Econometric Estimation of Stochastic Differential Equation Systems," Econometrica, Econometric Society, vol. 40(3), pages 565-577, May.
    7. Darla K. Munroe & Geoffrey J. D. Hewings & Dong Guo, 2007. "The Role of Intraindustry Trade in Interregional Trade in the Midwest of the US," Advances in Spatial Science, in: Russel Cooper & Kieran Donaghy & Geoffrey Hewings (ed.), Globalization and Regional Economic Modeling, chapter 6, pages 87-105, Springer.
    8. Gianfranco Piras & Kieran Donaghy & Giuseppe Arbia, 2007. "Nonlinear regional economic dynamics: continuous-time specification, estimation and stability analysis," Journal of Geographical Systems, Springer, vol. 9(4), pages 311-344, December.
    9. Phillips, P C B, 1991. "Error Correction and Long-Run Equilibrium in Continuous Time," Econometrica, Econometric Society, vol. 59(4), pages 967-980, July.
    10. Kieran P. Donaghy, 2001. "Solution and econometric estimation of spatial dynamic models in continuous space and continuous time," Journal of Geographical Systems, Springer, vol. 3(3), pages 257-270, November.
    11. Russel Cooper & Kieran Donaghy & Geoffrey Hewings (ed.), 2007. "Globalization and Regional Economic Modeling," Advances in Spatial Science, Springer, number 978-3-540-72444-5, Fall.
    12. Miranowski, John & Rhee, J., 1984. "Determination of Income, Production, and Employment Under Pollution Control: An Input-Output Approach," Staff General Research Papers Archive 10709, Iowa State University, Department of Economics.
    13. Oliver Fritz & Michael Sonis & Geoffrey J. D. Hewings, 2002. "Direct and Indirect Industrial Pollution Generation: A Field of Influence Approach," Advances in Spatial Science, in: Geoffrey J. D. Hewings & Michael Sonis & David Boyce (ed.), Trade, Networks and Hierarchies, chapter 23, pages 433-443, Springer.
    14. Round, Jeffrey I, 1985. "Decomposing Multipliers for Economic Systems Involving Regional and World Trade," Economic Journal, Royal Economic Society, vol. 95(378), pages 383-399, June.
    15. Jan Oosterhaven & Jan Van Der Linden, 1997. "European Technology, Trade and Income Changes for 1975-85: An Intercountry Input-Output Decomposition," Economic Systems Research, Taylor & Francis Journals, vol. 9(4), pages 393-412.
    16. Tao, Zhining & Hewings, Geoffrey & Donaghy, Kieran, 2010. "An economic analysis of Midwestern US criteria pollutant emissions trends from 1970 to 2000," Ecological Economics, Elsevier, vol. 69(8), pages 1666-1674, June.
    17. Manfred Lenzen & Lise-Lotte Pade & Jesper Munksgaard, 2004. "CO2 Multipliers in Multi-region Input-Output Models," Economic Systems Research, Taylor & Francis Journals, vol. 16(4), pages 391-412.
    18. Igos, Elorri & Rugani, Benedetto & Rege, Sameer & Benetto, Enrico & Drouet, Laurent & Zachary, Dan & Haas, Tom, 2015. "Integrated Environmental Assessment of Future Energy Scenarios Based on Economic Equilibrium Models," Climate Change and Sustainable Development 198461, Fondazione Eni Enrico Mattei (FEEM).
    19. Giuseppe Arbia & Jean H. P. Paelinck, 2003. "Spatial Econometric Modeling of Regional Convergence in Continuous Time," International Regional Science Review, , vol. 26(3), pages 342-362, July.
    20. Wymer, Clifford R., 1997. "Structural Nonlinear Continuous-Time Models In Econometrics," Macroeconomic Dynamics, Cambridge University Press, vol. 1(2), pages 518-548, June.
    21. Geoffrey J. D. Hewings & Michael Sonis & David Boyce (ed.), 2002. "Trade, Networks and Hierarchies," Advances in Spatial Science, Springer, number 978-3-662-04786-6, Fall.
    22. Philip R. Israilevich, 2002. "Frame-Shifting in Regional General Equilibrium Models," Advances in Spatial Science, in: Geoffrey J. D. Hewings & Michael Sonis & David Boyce (ed.), Trade, Networks and Hierarchies, chapter 21, pages 387-405, Springer.
    23. Diana Ivanova & Konstantin Stadler & Kjartan Steen-Olsen & Richard Wood & Gibran Vita & Arnold Tukker & Edgar G. Hertwich, 2016. "Environmental Impact Assessment of Household Consumption," Journal of Industrial Ecology, Yale University, vol. 20(3), pages 526-536, June.
    24. Conrad, Klaus & Schroder, Michael, 1993. "Choosing environmental policy instruments using general equilibrium models," Journal of Policy Modeling, Elsevier, vol. 15(5-6), pages 521-543.
    25. Rhee, Jeong J & Miranowski, John A, 1984. "Determination of Income, Production, and Employment under Pollution Control: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 146-150, February.
    26. Richard Wood & Christopher Dey, 2009. "Australia'S Carbon Footprint," Economic Systems Research, Taylor & Francis Journals, vol. 21(3), pages 243-266.
    27. Munksgaard, Jesper & Pedersen, Klaus Alsted & Wien, Mette, 2000. "Impact of household consumption on CO2 emissions," Energy Economics, Elsevier, vol. 22(4), pages 423-440, August.
    28. 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 262-271, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wymer Clifford R., 2012. "Continuous-Tme Econometrics of Structural Models," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 16(2), pages 1-28, April.
    2. Roca, Jordi & Serrano, Monica, 2007. "Income growth and atmospheric pollution in Spain: An input-output approach," Ecological Economics, Elsevier, vol. 63(1), pages 230-242, June.
    3. Hawdon, David & Pearson, Peter, 1995. "Input-output simulations of energy, environment, economy interactions in the UK," Energy Economics, Elsevier, vol. 17(1), pages 73-86, January.
    4. Hong Bae Kim & Sang Youp Jin & Kap Sik Yun, 2001. "Impact Analysis of a Water Quality Enhancing Policy: A Simple Input-Output Approach," Regional Studies, Taylor & Francis Journals, vol. 35(2), pages 103-111.
    5. Yang, Jin & Chen, Bin, 2014. "Carbon footprint estimation of Chinese economic sectors based on a three-tier model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 499-507.
    6. Dolter, Brett & Victor, Peter A., 2016. "Casting a long shadow: Demand-based accounting of Canada's greenhouse gas emissions responsibility," Ecological Economics, Elsevier, vol. 127(C), pages 156-164.
    7. Xie, Jian & Saltzman, Sidney, 2000. "Environmental Policy Analysis: An Environmental Computable General-Equilibrium Approach for Developing Countries," Journal of Policy Modeling, Elsevier, vol. 22(4), pages 453-489, July.
    8. Mònica Serrano, 2007. "The Production and Consumption Accounting Principles as a Guideline for Designing Environmental Tax Policy," Working Papers 2007.8, Fondazione Eni Enrico Mattei.
    9. Li, Y.L. & Chen, B. & Chen, G.Q., 2020. "Carbon network embodied in international trade: Global structural evolution and its policy implications," Energy Policy, Elsevier, vol. 139(C).
    10. Chambers, MJ & McCrorie, JR & Thornton, MA, 2017. "Continuous Time Modelling Based on an Exact Discrete Time Representation," Economics Discussion Papers 20497, University of Essex, Department of Economics.
    11. Shigetomi, Yosuke & Nansai, Keisuke & Kagawa, Shigemi & Tohno, Susumu, 2015. "Trends in Japanese households' critical-metals material footprints," Ecological Economics, Elsevier, vol. 119(C), pages 118-126.
    12. Franco Solís, Alberto & F.T. Avelino, André & Carrascal-Incera, André, 2020. "The evolution of household-induced value chains and their environmental implications," Ecological Economics, Elsevier, vol. 174(C).
    13. Nestor, Deborah Vaughn & Pasurka Jr, Carl A, 1995. "CGE model of pollution abatement processes for assessing the economic effects of environmental policy," Economic Modelling, Elsevier, vol. 12(1), pages 53-59, January.
    14. Misato Sato, 2014. "Embodied Carbon In Trade: A Survey Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 28(5), pages 831-861, December.
    15. Jani Laine & Juudit Ottelin & Jukka Heinonen & Seppo Junnila, 2017. "Consequential Implications of Municipal Energy System on City Carbon Footprints," Sustainability, MDPI, vol. 9(10), pages 1-14, October.
    16. Wiedmann, Thomas & Lenzen, Manfred & Turner, Karen & Barrett, John, 2007. "Examining the global environmental impact of regional consumption activities -- Part 2: Review of input-output models for the assessment of environmental impacts embodied in trade," Ecological Economics, Elsevier, vol. 61(1), pages 15-26, February.
    17. Kieran P. Donaghy, 1998. "Incomes Policies Revisited," Working Papers 46, Sapienza University of Rome, CIDEI.
    18. Cortés-Borda, D. & Ruiz-Hernández, A. & Guillén-Gosálbez, G. & Llop, M. & Guimerà, R. & Sales-Pardo, M., 2015. "Identifying strategies for mitigating the global warming impact of the EU-25 economy using a multi-objective input–output approach," Energy Policy, Elsevier, vol. 77(C), pages 21-30.
    19. Maggi, Bernardo, 2017. "A technology-based countries-interaction dynamic model for the study of European growth and stability: Were there the conditions for convergence?," Technological Forecasting and Social Change, Elsevier, vol. 125(C), pages 275-288.
    20. Su, Bin & Ang, B.W., 2011. "Multi-region input–output analysis of CO2 emissions embodied in trade: The feedback effects," Ecological Economics, Elsevier, vol. 71(C), pages 42-53.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jecstr:v:6:y:2017:i:1:d:10.1186_s40008-017-0083-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.