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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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    2. Acquaye, Adolf A. & Sherwen, Tomás & Genovese, Andrea & Kuylenstierna, Johan & Lenny Koh, SC & McQueen-Mason, Simon, 2012. "Biofuels and their potential to aid the UK towards achieving emissions reduction policy targets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 5414-5422.
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    4. Oluwafisayo Alabi & Karen Turner & Julia Race & Antonios Katris, 2022. "Proposition for an additional input output multiplier metric to access the value contribution of regional cluster industries," Papers in Regional Science, Wiley Blackwell, vol. 101(4), pages 795-809, August.
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    6. 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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