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A Conceptual Framework for Integrated Economic-Environmental Modelling

Author

Listed:
  • Onil Banerjee

    (Inter-American Development Bank)

  • Martin Cicowiez

    (UNLP - FCE)

  • Mark Horridge

    (Victoria University)

  • Renato Vargas

    (World Bank)

Abstract

Economy-wide models such as Computable General Equilibrium (CGE) Models are powerful tools that provide insights on policy impacts on standard economic indicators. With the recent publication of the System of Environmental-Economic Accounts (SEEA), the power of this approach is amplified. This paper addresses an important gap in economy-wide policy modelling applications and literature by developing a conceptual framework for the integration of the SEEA in the CGE framework, enabling for the first time the analysis of policy impacts on the economy and the environment in a quantitative, comprehensive and consistent framework. Previous integrated modelling efforts have generally focused on the interaction between the economy and one environmental resource in isolation, requiring significant data reconciliation. Integration of SEEA into a CGE circumvents this resource intense process, enhancing analytical power, obviating the need for strong assumptions in reconciling economic-environmental data, reducing start-up costs, and increasing the timeliness of evidence-based policy advice.

Suggested Citation

  • Onil Banerjee & Martin Cicowiez & Mark Horridge & Renato Vargas, 2016. "A Conceptual Framework for Integrated Economic-Environmental Modelling," CEDLAS, Working Papers 0202, CEDLAS, Universidad Nacional de La Plata.
    • Handle: RePEc:dls:wpaper:0202
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    Cited by:

    1. Qu, Yang & Hooper, Tara & Austen, Melanie C. & Papathanasopoulou, Eleni & Huang, Junling & Yan, Xiaoyu, 2023. "Development of a computable general equilibrium model based on integrated macroeconomic framework for ocean multi-use between offshore wind farms and fishing activities in Scotland," Applied Energy, Elsevier, vol. 332(C).
    2. Onil Banerjee & Martin Cicowiez & Renato Vargas & Mark Horridge, 2019. "The SEEA-Based Integrated Economic-Environmental Modelling Framework: An Illustration with Guatemala’s Forest and Fuelwood Sector," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(2), pages 539-558, February.
    3. Renato Vargas & Pamela Escobar & Maynor Cabrera & Javier Cabrera & Violeta Hernández & Vivian Guzmán & Martin Cicowiez, 2017. "Climate risk and food security in Guatemala," Working Papers MPIA 2017-01, PEP-MPIA.
    4. Jendrzejewski, Błażej, 2020. "Bioeconomic modelling – An application of environmentally adjusted economic accounts and the computable general equilibrium model," Land Use Policy, Elsevier, vol. 92(C).
    5. Banerjee, Onil & Crossman, Neville & Vargas, Renato & Brander, Luke & Verburg, Peter & Cicowiez, Martin & Hauck, Jennifer & McKenzie, Emily, 2020. "Global socio-economic impacts of changes in natural capital and ecosystem services: State of play and new modeling approaches," Ecosystem Services, Elsevier, vol. 46(C).
    6. Moses Nyakuwanika & Huibrecht Margaretha van der Poll & John Andrew van der Poll, 2021. "A Conceptual Framework for Greener Goldmining through Environmental Management Accounting Practices (EMAPs): The Case of Zimbabwe," Sustainability, MDPI, vol. 13(18), pages 1-26, September.
    7. Banerjee, Onil & Cicowiez, Martin & Vargas, Renato & Obst, Carl & Cala, Javier Rojas & Alvarez-Espinosa, Andrés Camilo & Melo, Sioux & Riveros, Leidy & Romero, Germán & Meneses, Diego Sáenz, 2021. "Gross domestic product alone provides misleading policy guidance for post-conflict land use trajectories in Colombia," Ecological Economics, Elsevier, vol. 182(C).
    8. Banerjee, Onil & Cicowiez, Martin & Moreda, Adela, 2017. "Reconciliation Once and for All: Economic Impact Evaluation and Social Cost Benefit Analysis," IDB Publications (Working Papers) 8531, Inter-American Development Bank.
    9. Roberto Louis Forestal & Shih-Ming Pi, 2021. "Using Artificial Neural networks and Optimal Scaling Model to Forecast Agriculture Commodity Price: An Ecological-economic Approach," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 11(3), pages 1-3.
    10. Banerjee, Onil & Cicowiez, Martin & Horridge, Mark & Vargas, Renato, 2019. "Evaluating synergies and trade-offs in achieving the SDGs of zero hunger and clean water and sanitation: An application of the IEEM Platform to Guatemala," Ecological Economics, Elsevier, vol. 161(C), pages 280-291.
    11. Onil Banerjee & Martin Cicowiez & Renato Vargas & Mark Horridge, 2019. "Construction of an Extended Environmental and Economic Social Accounting Matrix from a Practitioner’s Perspective," CEDLAS, Working Papers 0253, CEDLAS, Universidad Nacional de La Plata.
    12. Onil Banerjee & Martín Cicowiez, 2021. "Construcción de una Matriz de Contabilidad Social para Argentina para el Año 2018," CEDLAS, Working Papers 0287, CEDLAS, Universidad Nacional de La Plata.
    13. Banerjee, Onil & Alavalapati, Janaki R.R. & Lima, Eirivelthon, 2016. "A framework for ex-ante analysis of public investment in forest-based development: An application to the Brazilian Amazon," Forest Policy and Economics, Elsevier, vol. 73(C), pages 204-214.

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