IDEAS home Printed from https://ideas.repec.org/p/ver/wpaper/02-2024.html
   My bibliography  Save this paper

Investments in Green Projects and Value-added GDP: An Environmentally Integrated Multiregional SAM Approach

Author

Listed:
  • Darlington Agbonifi

    (Department of Economics (University of Verona))

Abstract

This paper presents an integrated methodology to simultaneously estimate the socioeconomic and environmental impacts of public-financed investments in green projects on the labor markets, value-added, and households induced consumption expenditures in a multiregional economy in equilibrium. I construct a novel dataset and implement an environmentally integrated multiregional social accounting matrix (EI-MRSAM) modelling technique on the regional macroeconomic investment analyses for Italy. Results show that Lombardy’s intra-regional investment impact on value-added (GDP) share accounts for almost 78%, while 22% accrues to the rest of Italy in terms of interregional value-added spillover effects through trade channels. The public investments impact on the regional and national economy decreases by around 10% of value-added after internalizing the environmental costs of climate change damages induced by industrial greenhouse gas (GHG) emissions. I then conduct a counterfactual ex-ante macro-policy evaluation of an endogenous increase by 25% of the baseline investments to each of thematic missions which represents the key areas of the public policy interventions. I find that the return-on-investment in digital and innovative public-administration as most efficient in terms of potential regional value-added growth compared to other counterfactual outcomes. The impact on consumption expenditures and induced GHG emissions are also consistent with those of value-added.

Suggested Citation

  • Darlington Agbonifi, 2024. "Investments in Green Projects and Value-added GDP: An Environmentally Integrated Multiregional SAM Approach," Working Papers 02/2024, University of Verona, Department of Economics.
    • Handle: RePEc:ver:wpaper:02/2024
    as

    Download full text from publisher

    File URL: http://dse.univr.it/home/workingpapers/wp2024n2.pdf
    File Function: First version
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    EI-MRSAM model; investments in green projects; value-added GDP; climate change; GHG emissions; environmental valuation; digital transformation;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • F18 - International Economics - - Trade - - - Trade and Environment
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • 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
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ver:wpaper:02/2024. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael Reiter (email available below). General contact details of provider: https://edirc.repec.org/data/isverit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.