Augmenting the input-output framework for 'Common Pool' resources: Operationalising the full Leontief Environmental Model

Allan, G. J., Hanley, N. D. , McGregor, P. G., Swales, J. K. and Turner, K. R. (2007) Augmenting the input-output framework for 'Common Pool' resources: Operationalising the full Leontief Environmental Model. Economic Systems Research, 19(1), pp. 1-22. (doi: 10.1080/09535310601164724)

Abstract

In its initial formulation, the full Leontief (1970) environmental model augments the conventional Input-Output (IO) table by introducing pollution generation and separately identified pollution elimination sectors. Essentially it extends IO analysis to incorporate the use of a 'common pool' resource. Subsequent literature has either been analytical in nature or has concentrated on pollution generation but not cleaning activity. In this paper we generate an empirical full Leontief environmental IO system, based on augmenting the existing Scottish IO tables through endogenising waste generation and waste disposal activity. Due to weaknesses in data, our empirical results need to be treated with some caution. However, the construction of the extended IO system and the interpretation of the output and price multiplier results raise a number of interesting practical and conceptual issues. The analysis undertaken here can be extended to other 'common pool' resources such as the use of highways and irrigation systems.

• Item Type: Articles
• Additional Information: The research reported in this paper was completed while Allan, McGregor, Swales and Turner were in receipt of funding from the EPSRC Supergen Marine Consortium. The authors also acknowledge the support of the Scottish Economic Policy Network in funding the empirical work reported here (scotcecon award reference 380703).
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Hanley, Professor Nicholas
• Authors: Allan, G. J., Hanley, N. D., McGregor, P. G., Swales, J. K., and Turner, K. R.
• College/School: College of Medical Veterinary and Life Sciences > School of Biodiversity, One Health & Veterinary Medicine
• Journal Name: Economic Systems Research
• Publisher: Taylor & Francis
• ISSN: 0953-5314
• ISSN (Online): 1469-5758