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Augmenting the Input-Output Framework for 'Common Pool' Resources: Operationalising the Full Leontief Environmental Model

Author

Listed:
  • Grant J. Allan
  • Nicholas D. Hanley
  • Peter G. Mcgregor
  • J. Kim Swales
  • Karen R. Turner

Abstract

In its initial formulation, the full Leontief (1970) environmental model augments the conventional Input-Output (IO) table by introducing pollution generation and separately identified pollution elimination sectors. Essentially it extends IO analysis to incorporate the use of a 'common pool' resource. Subsequent literature has either been analytical in nature or has concentrated on pollution generation but not cleaning activity. In this paper we generate an empirical full Leontief environmental IO system, based on augmenting the existing Scottish IO tables through endogenising waste generation and waste disposal activity. Due to weaknesses in data, our empirical results need to be treated with some caution. However, the construction of the extended IO system and the interpretation of the output and price multiplier results raise a number of interesting practical and conceptual issues. The analysis undertaken here can be extended to other 'common pool' resources such as the use of highways and irrigation systems.

Suggested Citation

  • Grant J. Allan & Nicholas D. Hanley & Peter G. Mcgregor & J. Kim Swales & Karen R. Turner, 2007. "Augmenting the Input-Output Framework for 'Common Pool' Resources: Operationalising the Full Leontief Environmental Model," Economic Systems Research, Taylor & Francis Journals, vol. 19(1), pages 1-22.
    • Handle: RePEc:taf:ecsysr:v:19:y:2007:i:1:p:1-22
    DOI: 10.1080/09535310601164724
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    Citations

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    Cited by:

    1. Court, Christa D., 2012. "Enhancing U.S. hazardous waste accounting through economic modeling," Ecological Economics, Elsevier, vol. 83(C), pages 79-89.
    2. Oulu, Martin, 2015. "The unequal exchange of Dutch cheese and Kenyan roses: Introducing and testing an LCA-based methodology for estimating ecologically unequal exchange," Ecological Economics, Elsevier, vol. 119(C), pages 372-383.
    3. Jensen, Christa D. & McIntyre, Stuart & Turner, Karen & Munday, Max, 2009. "Responsibility for regional waste generation: A single region extended input-output analysis with uni-directional trade flows," SIRE Discussion Papers 2009-58, Scottish Institute for Research in Economics (SIRE).
    4. Michelle Gilmartin & Peter McGregor & Kim Swales & Karen Turner, 2009. "The added value from adopting a CGE approach to analyse changes in environmental trade balances," Working Papers 0903, University of Strathclyde Business School, Department of Economics.
    5. Christa Court & Stuart McIntyre & Max Munday & Karen Turner, 2009. "Who Creates Waste? Different Perspectives on Waste Attribution in a Regional Economy," Working Papers Working Paper 2009-09, Regional Research Institute, West Virginia University.
    6. repec:rri:wpaper:200909 is not listed on IDEAS
    7. repec:rri:wpaper:200903 is not listed on IDEAS
    8. Oluwafisayo Alabi & Max Mundy & Kim Swales & Karen Turner, 2016. "Physical water use and water sector activity in environmental input-output analysis," Working Papers 1612, University of Strathclyde Business School, Department of Economics.
    9. Michelle Gilmartin & Kim Swales & Karen Turner, 2008. "A Comparison of Results From MRIO and Interregional Computable General Equilibrium (CGE) Analyses of the Impacts of a Positive Demand Shock on the ‘CO2 Trade Balance’ Between Scotland and the Rest," Working Papers 0808, University of Strathclyde Business School, Department of Economics.
    10. repec:rri:wpaper:201016 is not listed on IDEAS
    11. Karen Turner & Michelle Gilmartin & Peter G. McGregor & J. Kim Swales, 2012. "An integrated IO and CGE approach to analysing changes in environmental trade balances," Papers in Regional Science, Wiley Blackwell, vol. 91(1), pages 161-180, March.
    12. Taelim Choi & Randall W. Jackson & Nancey Green Leigh, 2009. "Constructing a Baseline Input-Output Model with Environmental Accounts (IOEA)," Working Papers Working Paper 2009-03, Regional Research Institute, West Virginia University, revised 09 Sep 2009.
    13. Christa Court, 2010. "Who Generates Hazardous Wastes? Attribution of Producer and Consumer Responsibility Within the US," Working Papers Working Paper 2010-16, Regional Research Institute, West Virginia University.

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