Environmental Policy in Single-Product and Joint Production Input-Output Models

Author(s):  
Annemarth M. Idenburg ◽  
Albert E. Steenge
Author(s):  
J. E. Woods

AbstractIt is well known that n-process, n-commodity (or square), models of productive single-product industries have positive solutions to their price and quantity systems if the rates of profit and growth lie in appropriate non-negative intervals. On the other hand, negative prices and quantities can occur in formal solutions of models of square, productive, multiple-product industries even when the rates of profit and growth are less than their respective maximum positive values. It is shown in this paper that these differences can be attributed to the presence in joint production of dominance, in either row or column versions. Results on positive solutions to the price (respectively, quantity) system are derived in terms of the absence of column (respectively, row) dominance of the net output matrix. As the concepts of row and column dominance are defined in terms of linear inequalities, the basic mathematical results to be applied are theorems of the alternative.


2020 ◽  
Vol 47 (4) ◽  
pp. 1502-1530
Author(s):  
François Bareille ◽  
Matteo Zavalloni

Abstract We theoretically examine the gains of the decentralisation of agri-environmental policy design. We consider a model with homogeneous regions and joint production of local and global public goods from agriculture. Assuming that governments are characterised by different agency costs and knowledge of the PG values, we evaluate whether decentralisation is a suitable strategy to improve the efficiency of agri-environmental payments. We find that partial decentralisation always improves the welfare. We apply our theoretical model to the case of abandoned wetlands in Brittany. We find that national governments are the most suitable to design agri-environmental policies. Our results contribute to reflections on future Common Agricultural Policy.


1995 ◽  
Vol 27 (4) ◽  
pp. 645-662 ◽  
Author(s):  
K Wernstedt

In this paper a regional input-output model is used to evaluate the distribution of short-run and long-run economic impacts of regional level environmental policy decisions among urban and rural household income classes. Both demand and price changes are analyzed. Demand changes are modeled as increases in final demand, and price changes are analyzed as exogenous shocks. In the short run, regional prices do not respond to the exogenous price shocks but, in the long run, the regional prices can vary following input substitution in a Cobb-Douglas production function. An income allocation matrix distributes to income classes the wage and nonwage income changes generated by the input-output formulations. A case study is presented that involves efforts to enhance fish populations in the Columbia River Basin in the US Pacific Northwest. The policy analysis shows that the type of initial policy impact (change in final demand or in prices) as well as the time frame considered (short or long run) can influence the final distribution of economic impacts among urban and rural income classes. The approach outlined here thus allows decisionmakers to explore several aspects of the income effects of a project across disaggregated segments of an affected population.


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