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An interregional input-output analysis of the pollution content of trade flows and environmental trade balances between five states in the US Mid-West

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  • Ha, Soo Junga
  • Turner, Karen
  • Hewings, Geoffrey

Abstract

In this paper we attempt an empirical application of the multi-region input-output (MRIO) method in order to enumerate the pollution content of interregional trade flows between five Mid-West regions/states in the US -Illinois, Indiana, Iowa, Michigan and Wisconsin – and the rest of the US. This allows us to analyse some very important issues in terms of the nature and significance of interregional environmental spillovers within the US Mid-West and the existence of pollution ‘trade balances’ between states. Our results raise questions in terms of the extent to which authorities at State level can control local emissions where they are limited in the way some emissions can be controlled, particularly with respect to changes in demand elsewhere in the Mid-West and US. This implies a need for policy co-ordination between national and state level authorities in the US to meet emissions reductions targets. The existence of an environmental trade balances between states also raises issues in terms of net losses/gains in terms of pollutants as a result of interregional trade within the US and whether, if certain activities can be carried out using less polluting technology in one region relative to others, it is better for the US as a whole if this type of relationship exists.

Suggested Citation

  • Ha, Soo Junga & Turner, Karen & Hewings, Geoffrey, 2009. "An interregional input-output analysis of the pollution content of trade flows and environmental trade balances between five states in the US Mid-West," SIRE Discussion Papers 2009-43, Scottish Institute for Research in Economics (SIRE).
    • Handle: RePEc:edn:sirdps:90
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    File URL: http://hdl.handle.net/10943/90
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    References listed on IDEAS

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    1. Turner, Karen & Lenzen, Manfred & Wiedmann, Thomas & Barrett, John, 2007. "Examining the global environmental impact of regional consumption activities -- Part 1: A technical note on combining input-output and ecological footprint analysis," Ecological Economics, Elsevier, vol. 62(1), pages 37-44, April.
    2. McGregor, Peter G. & Swales, J. Kim & Turner, Karen, 2008. "The CO2 'trade balance' between Scotland and the rest of the UK: Performing a multi-region environmental input-output analysis with limited data," Ecological Economics, Elsevier, vol. 66(4), pages 662-673, July.
    3. Munksgaard, Jesper & Pedersen, Klaus Alsted, 2001. "CO2 accounts for open economies: producer or consumer responsibility?," Energy Policy, Elsevier, vol. 29(4), pages 327-334, March.
    4. Wiedmann, Thomas, 2009. "A review of recent multi-region input-output models used for consumption-based emission and resource accounting," Ecological Economics, Elsevier, vol. 69(2), pages 211-222, December.
    5. Wiedmann, Thomas & Lenzen, Manfred & Turner, Karen & Barrett, John, 2007. "Examining the global environmental impact of regional consumption activities -- Part 2: Review of input-output models for the assessment of environmental impacts embodied in trade," Ecological Economics, Elsevier, vol. 61(1), pages 15-26, February.
    6. Richard S. Conway Jr., 1990. "The Washington Projection and Simulation Model: A Regional Interindustry Econometric Model," International Regional Science Review, , vol. 13(1-2), pages 141-165, April.
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    Cited by:

    1. 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.
    2. De, Fence Janine & McGregor, Peter G & Munday, Max & Swales, J Kim & Turner, Karen, 2010. "Incorporating jurisdiction issues into an analysis of carbon attributable to Welsh final consumption under different economic conditions: an integrated IO and CGE analysis," Stirling Economics Discussion Papers 2010-16, University of Stirling, Division of Economics.

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    More about this item

    Keywords

    Multi-region input-output models; environmental trade balance; air pollution;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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