Augmenting the Leontief Input-Output Framework for 'Common Pool' Resources: Operationalising the Full Leontief Environmental Model

Citation

Allan G, Hanley N, McGregor PG, Swales JK & 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. 1-22. https://doi.org/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.

Keywords
Input–output; Environment; Pollution; Waste disposal; Common pool resources

Journal
Economic Systems Research: Volume 19, Issue 1