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Impact Analysis of a Water Quality Enhancing Policy: A Simple Input-Output Approach

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  • Hong Bae Kim
  • Sang Youp Jin
  • Kap Sik Yun

Abstract

It is generally believed that there exists a trade-off between economic activity and environmental quality since pollutants are generated in the process of production and consumption of commodities. The literature shows, however, that there have been relatively few empirical attempts to analyse this trade-off relationship. This tendency may stem from the fact that there is insufficient data to represent the environmental sector. This paper has constructed the environmental sector endogenized multi-region input-output (ESEMRIO) model in order to measure the impacts of water quality enhancing policy on the Korean economy of two regions, recognizing the environmental sector as a resourceusing sector. The ESEMRIO model specifically estimates the impacts of the policy on the economy in terms of the policy costs, industrial output and employment. En regle generale, l'idee recue c'est qu'il existe un compromis entre l'activite economique et la qualite de l'environnement dans la mesure ou la production et la consommation des denrees impliquent la creation des polluants. Toujours est-il que la documentation laisse voir que rares sont les etudes empiriques qui analysent ce compromis. Il est possible que cette tendance remonte au manque de donnees relatives a l'environnement. Cet article a cherche a construire pour l'environnement un modele multiregional endogene portant sur les echanges interindustriels (ESEMRIO) afin de mesurer les retombees d'une politique en faveur de la valorisation des eaux sur deux regions au sein de l'economie coreenne, tout en considerant l'environnement comme usager des ressources. Plus particulierement, le modele ESEMRIO estime les retombees de la politique sur l'economie en termes des couts de la politique, du rendement industriel et de l'emploi. Da beim Produktionsvorgang und beim Verbrauch von Bedarfsgutern Umweltverschmutzung entsteht, wird allgemein angenommen, dass Einbussen entweder bei wirtschaftlichen Unternehmungen oder in der Qualitat der Umwelt zu verzeichnen sind. Die Literatur zeigt jedoch, dass verhaltnismassig wenig empirische Versuche unternommen worden sind, die Beziehung von jeweiligen Verlusten zu analysieren. Diese Tendenz mag der Tatsache zuzuschreiben sein, dass es nur ungenugend Daten fur eine Darstellung des Umweltsektors gibt. In diesem Aufsatz wird ein mehrregionales endogenisiertes Aufwands-Ertragsmodell fur den Umweltsektor (environmental sector endogenized multi-region input-output= ESEMRIO) konstruiert, um die Auswirkungen der Wasserverbesserungsbestrebungen auf zwei Regionen der koreanischen Wirtschaft zu messen, wobei der Unweltsektor als ein Rohstoffe nutzender Sektor verstanden wird. Das ESEMRIO berechnet insbesondere die Auswirkungen der Bestrebungen auf die Wirtschaft in Bezug auf die Kosten der Bestrebungen, industrielle Leistung und Erwerbstatigkeit.

Suggested Citation

  • Hong Bae Kim & Sang Youp Jin & Kap Sik Yun, 2001. "Impact Analysis of a Water Quality Enhancing Policy: A Simple Input-Output Approach," Regional Studies, Taylor & Francis Journals, vol. 35(2), pages 103-111.
    • Handle: RePEc:taf:regstd:v:35:y:2001:i:2:p:103-111
    DOI: 10.1080/00343400120033098
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    References listed on IDEAS

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    1. Liew, Chung Ja, 1984. "Pollution-related variable input-output model: The Tulsa SMSA as a case study," Journal of Urban Economics, Elsevier, vol. 15(3), pages 327-349, May.
    2. Rhee, Jeong J & Miranowski, John A, 1984. "Determination of Income, Production, and Employment under Pollution Control: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 146-150, February.
    3. Miranowski, John & Rhee, J., 1984. "Determination of Income, Production, and Employment Under Pollution Control: An Input-Output Approach," Staff General Research Papers Archive 10709, Iowa State University, Department of Economics.
    4. Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-271, August.
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    Cited by:

    1. Masaru Ichihashi & Shinji Kaneko, 2011. "Impact Analysis of Changes in The Price of Water Resources in China and Beijing," IDEC DP2 Series 1-5, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
    2. Xiangzheng Deng & Fan Zhang & Zhan Wang & Xing Li & Tao Zhang, 2014. "An Extended Input Output Table Compiled for Analyzing Water Demand and Consumption at County Level in China," Sustainability, MDPI, vol. 6(6), pages 1-20, May.

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