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The Integrated Economic-Environmental Modelling Framework: An Illustration with Guatemala's Forest and Fuelwood Sectors

Author

Listed:
  • Banerjee, Onil
  • Cicowiez, Martin
  • Vargas, Renato
  • Horridge, Mark

Abstract

This paper develops and operationalizes the Integrated Economic-Environmental Modelling (IEEM) platform which integrates environmental data organized under the first international standard for environmental-economic accounting with a powerful economy-wide modelling approach. IEEM enables the ex-ante economic analysis of public policies and investment on the economy and the environment in a quantitative, comprehensive and consistent framework. IEEM elucidates the two-way interrelationships between the economy and environment, considering how economic activities depend on the environment as a source of inputs and as a sink for its outputs. In addition to standard economic impact indicators such as gross domestic product, income and employment, IEEM generates indicators that describe policy impacts on the use of environmental resources, wealth and environmental quality which together determine prospects for future economic growth and well-being. To illustrate the analytical capacity of IEEM, the model is calibrated with Guatemala's environmental-economic accounts and applied to analysis of its forest and fuelwood sector where negative health and environmental impacts arise from inefficient household fuelwood use.

Suggested Citation

  • Banerjee, Onil & Cicowiez, Martin & Vargas, Renato & Horridge, Mark, 2016. "The Integrated Economic-Environmental Modelling Framework: An Illustration with Guatemala's Forest and Fuelwood Sectors," IDB Publications (Working Papers) 8036, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:8036
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    Citations

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    Cited by:

    1. 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.
    2. Onil Banerjee & Martin Cicowiez & Adela Moreda, 2017. "Reconciliation Once and For All: Economic Impact Evaluation and Social Cost Benefit Analysis," CEDLAS, Working Papers 0207, CEDLAS, Universidad Nacional de La Plata.
    3. 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.

    More about this item

    Keywords

    ecosystem services; system of national accounting; computable general equilibrium model; economic and environmental indicators; system of environmental-economic accounting; natural capital; ex-ante economic impact evaluation; wealth;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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