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Efficient Economic and Environmental Policies Combining Multicriteria Techniques and General Equilibrium Modelling

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  • Francisco J. André

    () (Department of Economics, Universidad Pablo de Olavide)

  • M. Alejandro Cardenete

    () (Department of Economics, Universidad Pablo de Olavide)

Abstract

In this paper we propose an analytical approach to obtain so-called efficient policies in terms of environmental and economic objectives. A policy is said to be efficient if any environmental or economic achievement is obtained with the minimum possible detriment to other relevant objectives. We apply this concept obtain the minimum possible environmental impact for a given growth rate or, symmetrically, the maximum economic growth for a given amount of polluting emissions. We present an application to Spanish economy with 2000 data using a Computable General Equilibrium model. We evaluate the efficiency of the observed policy and give some policy recommendations. Finally, we give an idea about how to enlarge the analysis by including additional objectives.

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File URL: http://www.upo.es/serv/bib/wps/econ0908.pdf
File Function: First version, 2009
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Bibliographic Info

Paper provided by Universidad Pablo de Olavide, Department of Economics in its series Working Papers with number 09.08.

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Length: 13 pages
Date of creation: Jul 2009
Date of revision:
Handle: RePEc:pab:wpaper:09.08

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Keywords: Efficient policies; Computable general equilibrium; multicriteria decision making.;

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References

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  1. Francisco J. André & M. Alejandro Cardenete Flores, 2006. "Designing Efficient Policies in a Regional Economy. A MCDM-CGE Approach," Economic Working Papers at Centro de Estudios Andaluces E2006/03, Centro de Estudios Andaluces.
  2. Francisco J. André & M. Alejandro Cardenete & Esther Velázquez Alonso, 2004. "Performing an Environmental Tax Reform in a Regional Economy. A Computable General Equilibrium Approach," Economic Working Papers at Centro de Estudios Andaluces E2004/04, Centro de Estudios Andaluces.
  3. André, Francisco J. & Cardenete, M. Alejandro, 2009. "Defining efficient policies in a general equilibrium model: a multi-objective approach," Socio-Economic Planning Sciences, Elsevier, vol. 43(3), pages 192-200, September.
  4. Gerald W. Evans, 1984. "An Overview of Techniques for Solving Multiobjective Mathematical Programs," Management Science, INFORMS, vol. 30(11), pages 1268-1282, November.
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