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The Strathprints institutional repository is a digital archive of University of Strathclyde's Open Access research outputs. Strathprints provides access to thousands of Open Access research papers by University of Strathclyde researchers, including by researchers from the Department of Computer & Information Sciences involved in mathematically structured programming, similarity and metric search, computer security, software systems, combinatronics and digital health.

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Augmenting the leontief input-output framework for 'common pool' resources: operationalising the full leontief environmental model

Allan, G. and Hanley, N. and McGregor, P.G. and Swales, J.K. and Turner, K. (2007) Augmenting the leontief input-output framework for 'common pool' resources: operationalising the full leontief environmental model. Economic Systems Research, 19 (1). pp. 1-20. ISSN 0953-5314

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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.