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Augmenting the Input-Output Framework for 'Common Pool' Resources: Operationalising the Full Leontief Environmental Model

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Author Info
Grant J. Allan
Nicholas D. Hanley
Peter G. Mcgregor
J. Kim Swales
Karen R. Turner

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Abstract

In its initial formulation, the full Leontief (1970) environmental model augments the conventional Input-Output (IO) table by introducing pollution generation and separately identified pollution elimination sectors. Essentially it extends IO analysis to incorporate the use of a 'common pool' resource. Subsequent literature has either been analytical in nature or has concentrated on pollution generation but not cleaning activity. In this paper we generate an empirical full Leontief environmental IO system, based on augmenting the existing Scottish IO tables through endogenising waste generation and waste disposal activity. Due to weaknesses in data, our empirical results need to be treated with some caution. However, the construction of the extended IO system and the interpretation of the output and price multiplier results raise a number of interesting practical and conceptual issues. The analysis undertaken here can be extended to other 'common pool' resources such as the use of highways and irrigation systems.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Economic Systems Research.

Volume (Year): 19 (2007)
Issue (Month): 1 ()
Pages: 1-22
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Handle: RePEc:taf:ecsysr:v:19:y:2007:i:1:p:1-22

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Related research
Keywords: Input-output environment pollution waste disposal common pool resources

Cited by:
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  1. Michelle Gilmartin & Kim Swales & Karen Turner, 2008. "A Comparison of Results From MRIO and Interregional Computable General Equilibrium (CGE) Analyses of the Impacts of a Positive Demand Shock on the ‘CO2 Trade Balance’ Between Scotland and the Rest," Working Papers 08-08, University of Strathclyde Business School, Department of Economics. [Downloadable!]
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This page was last updated on 2008-12-28.


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