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A goal programming approach for a joint design of macroeconomic and environmental policies: a methodological proposal and an application to the spanish economy

Author

Listed:
  • Francisco J. André

    (Department of Economics, Universidad Pablo de Olavide)

  • M. Alejandro Cardenete

    (Department of Economics, Universidad Pablo de Olavide)

  • Carlos Romero

    (Departamento de Economía y Gestión Forestal, Escuela Tecnica Superior de Ingenieros de Montes, Universidad Politécnica de Madrid.)

Abstract

Economic policy needs to pay more attention to environmental issues. This calls for the development of methodologies capable of incorporating environmental as well as macroeconomic goals in the design of public policies. In view of this, this paper proposes a methodology based upon Simonian satisficing logic implemented with the help of goal programming models to address the joint design of macroeconomic and environmental policies. The methodology is applied to the Spanish economy, where a joint policy is elicited, taking into account macroeconomic goals (economic growth, inflation, unemployment, public deficit) and environmental goals (CO2, NOx and SOx emissions) within the context of a computable general equilibrium model.

Suggested Citation

  • Francisco J. André & M. Alejandro Cardenete & Carlos Romero, 2007. "A goal programming approach for a joint design of macroeconomic and environmental policies: a methodological proposal and an application to the spanish economy," Working Papers 07.12, Universidad Pablo de Olavide, Department of Economics.
    • Handle: RePEc:pab:wpaper:07.12
    as

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    File URL: http://www.upo.es/serv/bib/wps/econ0712.pdf
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    References listed on IDEAS

    as
    1. Herbert A. Simon, 1955. "A Behavioral Model of Rational Choice," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 69(1), pages 99-118.
    2. Kehoe, Timothy J & Polo, Clemente & Sancho, Ferran, 1995. "An Evaluation of the Performance of an Applied General Equilibrium Model of the Spanish Economy," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 6(1), pages 115-141, June.
    3. Francisco André & M. Cardenete & Esther Velázquez, 2005. "Performing an environmental tax reform in a regional economy. A computable general equilibrium approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 39(2), pages 375-392, June.
    4. Bohringer, Christoph & Loschel, Andreas, 2006. "Computable general equilibrium models for sustainability impact assessment: Status quo and prospects," Ecological Economics, Elsevier, vol. 60(1), pages 49-64, November.
    5. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    6. Tamiz, Mehrdad & Jones, Dylan & Romero, Carlos, 1998. "Goal programming for decision making: An overview of the current state-of-the-art," European Journal of Operational Research, Elsevier, vol. 111(3), pages 569-581, December.
    7. Romero, Carlos & Rehman, Tahir, 1987. "Natural Resource Management and the Use of Multiple Criteria Decision-Making Techniques: A Review," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 14(1), pages 61-89.
    8. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, September.
    9. Kehoe,Timothy J. & Srinivasan,T. N. & Whalley,John (ed.), 2005. "Frontiers in Applied General Equilibrium Modeling," Cambridge Books, Cambridge University Press, number 9780521825252, January.
    10. Romero, Carlos, 2001. "Extended lexicographic goal programming: a unifying approach," Omega, Elsevier, vol. 29(1), pages 63-71, February.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Francisco Javier André García & M. Alejandro Cardenete Flores, 2008. "Políticas económicas y ambientales eficientes en un contexto de equilibrio general aplicado," EKONOMIAZ. Revista vasca de Economía, Gobierno Vasco / Eusko Jaurlaritza / Basque Government, vol. 67(01), pages 72-91.

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    More about this item

    Keywords

    Environmental policies; goal programming; macroeconomic policies; computable general equilibrium model; multiple criteria decision making; satisficing logic.;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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