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An integrated IO and CGE approach to analysing changes in environmental trade balances

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  • Gilmartin, Michelle
  • McGregor, Peter G
  • Swales, J Kim
  • Turner, Karen

Abstract

Input-output (IO) tables and demand-driven multiplier techniques are absolutely appropriate for conventional pollution attribution (accounting) analyses as they provide all the required information on pollution embodied in intersectoral interactions and interregional trade flows. However, as a model of how the economy adjusts in response to a marginal change in activity, IO is unlikely to be appropriate as it is only a very special case of general equilibrium models. We propose an integrated IO and computable general equilibrium (CGE) approach, with CGE analysis of the impacts of a change in activity and model results used to inform an IO attribution analysis of pollution embodied in interregional trade flows before and after the change is introduced.

Suggested Citation

  • Gilmartin, Michelle & McGregor, Peter G & Swales, J Kim & Turner, Karen, 2011. "An integrated IO and CGE approach to analysing changes in environmental trade balances," Stirling Economics Discussion Papers 2011-04, University of Stirling, Division of Economics.
  • Handle: RePEc:stl:stledp:2011-04
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    File URL: http://hdl.handle.net/1893/7144
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    References listed on IDEAS

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    2. Alabi Oluwafisayo & Martin Smith & John Irvine & Karen Turner, 2018. "Framing policy on low emissions vehicles in terms of economic gains: might the most straightforward gain be delivered by supply chain activity to support refuelling?," Working Papers 1801, University of Strathclyde Business School, Department of Economics.
    3. Gabriela Michalek & Reimund Schwarze, 2015. "Carbon leakage: pollution, trade or politics?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 17(6), pages 1471-1492, December.
    4. Turner, Karen & Munday, Max & McGregor, Peter & Swales, Kim, 2012. "How responsible is a region for its carbon emissions? An empirical general equilibrium analysis," Ecological Economics, Elsevier, vol. 76(C), pages 70-78.

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