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Assessing the Employment Impacts of Environmental and Natural Resource Policy

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  • Peter Berck
  • Sandra Hoffmann

Abstract

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

Suggested Citation

  • Peter Berck & Sandra Hoffmann, 2002. "Assessing the Employment Impacts of Environmental and Natural Resource Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(1), pages 133-156, June.
    • Handle: RePEc:kap:enreec:v:22:y:2002:i:1:p:133-156
    DOI: 10.1023/A:1015531702905
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    References listed on IDEAS

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    1. Hoffmann, Sandra & Berek, Peter & Costello, Christopher & Fortmann, Louise, 2000. "Poverty and Employment in Timber-Dependent Counties," RFF Working Paper Series dp-00-52, Resources for the Future.
    2. Banerjee, Anindya & Hendry, David F & Mizon, Grayham E, 1996. "The Econometric Analysis of Economic Policy," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(4), pages 573-600, November.
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    4. Xiaoming Pan & Steven Kraines, 2001. "Environmental Input-Output Models for Life-Cycle Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(1), pages 61-72, September.
    5. Rose, Adam, 1995. "Input-output economics and computable general equilibrium models," Structural Change and Economic Dynamics, Elsevier, vol. 6(3), pages 295-304, August.
    6. 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.
    7. 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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