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Assessing the Employment Impacts of Environmental and Natural Resource Policy

  • Peter Berck
  • Sandra Hoffmann

This paper provides an introductory guide for environmental andresource economists to methods of assessing the impact of environmentaland natural resource policy on employment. It examines five basicapproaches to evaluating the effect of a policy action on employment:1) supply and demand analysis of the affected sector; 2) partialequilibrium analysis of multiple markets; 3) fixed-price, generalequilibrium simulations (input-output (I-O) and social accounting matrix (SAM) multiplier models); 4) non-linear, general equilibriumsimulations (Computable General Equilibrium (CGE) models); and 5) econometric estimation of the adjustment process, particularly timeseries analysis. The basic modeling structure and data requirementsfor each of these approaches are described. Simple examples of theirapplication to evaluation of environmental and natural resourcepolicy are developed and the relative merits and applicability of each are discussed. Copyright Kluwer Academic Publishers 2002

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Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 22 (2002)
Issue (Month): 1 (June)
Pages: 133-156

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Handle: RePEc:kap:enreec:v:22:y:2002:i:1:p:133-156
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100263

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  1. Andrew C. Krikelas, 1992. "Why regions grow: a review of research on the economic base model," Economic Review, Federal Reserve Bank of Atlanta, issue Jul, pages 16-29.
  2. Jorgenson, Dale W. & Wilcoxen, Peter J., 1990. "Intertemporal general equilibrium modeling of U.S. environmental regulation," Journal of Policy Modeling, Elsevier, vol. 12(4), pages 715-744.
  3. McKitrick, Ross R., 1998. "The econometric critique of computable general equilibrium modeling: the role of functional forms," Economic Modelling, Elsevier, vol. 15(4), pages 543-573, October.
  4. Brown, Scott J. & Coulson, N. Edward & Engle, Robert F., 1992. "On the determination of regional base and regional base multipliers," Regional Science and Urban Economics, Elsevier, vol. 22(4), pages 619-635, November.
  5. Xiaoming Pan & Steven Kraines, 2001. "Environmental Input-Output Models for Life-Cycle Analysis," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 20(1), pages 61-72, September.
  6. David Abler & Adrián Rodríguez & James Shortle, 1999. "Parameter Uncertainty in CGE Modeling of the Environmental Impacts of Economic Policies," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 14(1), pages 75-94, July.
  7. Banerjee, A & Hendry, D-F & Mizon, G-E, 1996. "The Econometric Analysis of Economic Policy," Economics Working Papers eco96/34, European University Institute.
  8. Mark D. Partridge & Dan S. Rickman, 1998. "Regional Computable General Equilibrium Modeling: A Survey and Critical Appraisal," International Regional Science Review, , vol. 21(3), pages 205-248, December.
  9. Rose, Adam, 1995. "Input-output economics and computable general equilibrium models," Structural Change and Economic Dynamics, Elsevier, vol. 6(3), pages 295-304, August.
  10. Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-71, August.
  11. Hoffmann, Sandra & Berek, Peter & Costello, Christopher & Fortmann, Louise, 2000. "Poverty and Employment in Timber-Dependent Counties," Discussion Papers dp-00-52, Resources For the Future.
  12. Robinson, Sherman & Roland-Holst, David W., 1988. "Macroeconomic structure and computable general equilibrium models," Journal of Policy Modeling, Elsevier, vol. 10(3), pages 353-375.
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