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Supply-use framework for international environmental policy analysis

Research output: Scientific - peer-reviewArticle

The technical variation between countries in the production of goods and services, in terms of not only input coefficients, but also emission coefficients, creates scope for international trade to reduce environmental pressures. For this purpose we extend the theory of trade and the environment as to accommodate technical variation between countries in production and emissions. We use and steer close to the extended input and output tables, which include emission data. By treating environmental standards analogous to capital and labor capacity constraints, the aggregation problem for economic and environmental measures gets the same format as the well-understood aggregation problem for labor and capital. In a pilot application we determine the gains to free trade in products and emission permits.
Original languageEnglish
Pages (from-to)77-94
JournalEconomic Systems Research
Volume27
Issue number1
DOIs
StatePublished - 2015

    Research areas

  • environmental input-output accounts, environmental policy, multi-economy systems, international trade

DOI

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