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Multidimensional Analysis of the Sea Economy: A Case Study for the Madeira Island, Portugal

Author

Listed:
  • Santos, Felipe dos

    (Departamento de Economia, Universidade de São Paulo)

  • Bícego, Samuel

    (Departamento de Economia, Universidade de São Paulo)

  • Rocha, Ademir

    (Departamento de Economia, Universidade de São Paulo)

  • Haddad, Eduardo

    (Departamento de Economia, Universidade de São Paulo)

Abstract

Since the inception of the concept of the Blue Economy, numerous studies have made efforts to identify the contributions of the sea to national economies. This has required the use of disaggregated data, which is not always available for regions. In this context, the National Institute of Statistics (INE) has identified activities directly or indirectly related to the Blue Economy on the mainland and islands of Portugal. More specifically, in the Autonomous Region of Madeira (ARM), it is believed that the sea contributed €922 million of the regional output of 2017. Using the linkages provided by the Input-Output Matrix (IOM), we could make three significant contributions to this analysis. Firstly, a partial hypothetical extraction is a formal approach that accurately identifies the indirect effects of the marine sector on the entire Portuguese supply chain. Secondly, we can simultaneously impose restrictions on the demand side. This is relevant since most marine activities are labor-intensive and thus affect the payment structure. Finally, we can delve deeper into measuring the impact of Madeira's maritime economy on employment level and its composition, and regional CO2 emissions. Our findings reveal that the marine sector contributes €2.049 billion (28%) to Madeira's economy and €2.451 billion (0.70%) to Portugal’s gross output. Without the sea on the ARM, national employment levels for women, young people, and the immigrants would decline by 0.83%, 0.7% and 0.53%, respectively.

Suggested Citation

  • Santos, Felipe dos & Bícego, Samuel & Rocha, Ademir & Haddad, Eduardo, 2024. "Multidimensional Analysis of the Sea Economy: A Case Study for the Madeira Island, Portugal," TD NEREUS 8-2024, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    • Handle: RePEc:ris:nereus:2024_008
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    References listed on IDEAS

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    More about this item

    Keywords

    Blue economy; Portuguese islands; Economic impacts.;
    All these keywords.

    JEL classification:

    • 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
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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