A goal programming approach for a joint design of macroeconomic and environmental policies: a methodological proposal and an application to the spanish economy
Francisco J. André () (Department of Economics, Universidad Pablo de Olavide) M. Alejandro Cardenete () (Department of Economics, Universidad Pablo de Olavide) Carlos Romero () (Departamento de Economía y Gestión Forestal, Escuela Tecnica Superior de Ingenieros de Montes, Universidad Politécnica de Madrid.)
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Economic policy needs to pay more attention to environmental issues. This calls for the development of methodologies capable of incorporating environmental as well as macroeconomic goals in the design of public policies. In view of this, this paper proposes a methodology based upon Simonian satisficing logic implemented with the help of goal programming models to address the joint design of macroeconomic and environmental policies. The methodology is applied to the Spanish economy, where a joint policy is elicited, taking into account macroeconomic goals (economic growth, inflation, unemployment, public deficit) and environmental goals (CO2, NOx and SOx emissions) within the context of a computable general equilibrium model.
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Paper provided by Universidad Pablo de Olavide, Departamento de Economía in its series Working Papers with number
07.12.
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