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From Ecological Footprint to Ecological Rent: An Economic Indicator for Resource Constraints

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  • Kurt Kratena

Abstract

This paper takes as its starting point a combination of a (monetary) input-output model with a national Ecological Footprint account for Germany in the spirit of Wiedmann et al. (2006). Footprint as well as biocapacity are dealt with at the industry level. Gross output of each industry and final demand for each industry can then be split into a share that can be reconciled with biocapacity and another share that corresponds to biocapacity overshooting. The Ecological Footprint concept is extended in this study by introducing the additional biophysically productive land necessary for sustaining the given level of economic activity. It is assumed that each industry had to rent the corresponding areas and to apply a given technology in order to make this additional land biophysically productive. This results in a new technology for each industry leading to an increase in costs and prices. The new price level is directly linked to the share of output that corresponds to biocapacity overshooting. Economic indicators can be derived by measuring the income difference brought about by the price increase. This difference corresponds to a Ricardian rent which is due to resource constraints on output growth.

Suggested Citation

  • Kurt Kratena, 2007. "From Ecological Footprint to Ecological Rent: An Economic Indicator for Resource Constraints," WIFO Working Papers 292, WIFO.
  • Handle: RePEc:wfo:wpaper:y:2007:i:292
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    References listed on IDEAS

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    1. Bicknell, Kathryn B. & Ball, Richard J. & Cullen, Ross & Bigsby, Hugh R., 1998. "New methodology for the ecological footprint with an application to the New Zealand economy," Ecological Economics, Elsevier, vol. 27(2), pages 149-160, November.
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    3. Faye Duchin, 2005. "A world trade model based on comparative advantage with m regions, n goods, and k factors," Economic Systems Research, Taylor & Francis Journals, vol. 17(2), pages 141-162.
    4. Daly, Herman E., 1990. "Toward some operational principles of sustainable development," Ecological Economics, Elsevier, vol. 2(1), pages 1-6, April.
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    6. Faye Duchin, 2004. "Input-Output Economics and Material Flows," Rensselaer Working Papers in Economics 0424, Rensselaer Polytechnic Institute, Department of Economics.
    7. McDonald, Garry W. & Patterson, Murray G., 2004. "Ecological Footprints and interdependencies of New Zealand regions," Ecological Economics, Elsevier, vol. 50(1-2), pages 49-67, September.
    8. Lenzen, Manfred & Murray, Shauna A., 2001. "A modified ecological footprint method and its application to Australia," Ecological Economics, Elsevier, vol. 37(2), pages 229-255, May.
    9. Wiedmann, Thomas & Minx, Jan & Barrett, John & Wackernagel, Mathis, 2006. "Allocating ecological footprints to final consumption categories with input-output analysis," Ecological Economics, Elsevier, vol. 56(1), pages 28-48, January.
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    Cited by:

    1. Jin, Wei & Xu, Linyu & Yang, Zhifeng, 2009. "Modeling a policy making framework for urban sustainability: Incorporating system dynamics into the Ecological Footprint," Ecological Economics, Elsevier, vol. 68(12), pages 2938-2949, October.
    2. Kronenberg, Tobias, 2009. "The impact of demographic change on energy use and greenhouse gas emissions in Germany," Ecological Economics, Elsevier, vol. 68(10), pages 2637-2645, August.
    3. Yoann Verger, 2015. "Sraffa and ecological economics: review of the literature," Working Papers hal-01182894, HAL.
    4. Khan, S. & Khan, M.A. & Hanjra, M.A. & Mu, J., 2009. "Pathways to reduce the environmental footprints of water and energy inputs in food production," Food Policy, Elsevier, vol. 34(2), pages 141-149, April.
    5. Thomas Wiedmann & John Barrett, 2010. "A Review of the Ecological Footprint Indicator—Perceptions and Methods," Sustainability, MDPI, Open Access Journal, vol. 2(6), pages 1-49, June.

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    Keywords

    input-output models; Ecological Footprint; Ricardian rent;

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