Abstract
Increased spatial dependency of economic activities, as well as spatial differentiation of production and consumption, has implications for environmental policy. One of the issues that has gained importance is the responsibility for the emissions from products that cross national boundaries during the environmental policy's lifetime. This paper discusses the different ethical views of environmental responsibility. Furthermore, the policy measures that are associated with the different viewpoints are analyzed in a novel dynamic two-country two-sector dynamic input - output model. A numerical example is modeled to assess taxing schemes that are based on these ethical viewpoints. The results show that a tax on the 'embodied' environmental pressure, which is generally viewed as ethically preferable, is less effective that the current policy of taxing consumers of products. Our discussion however shows that these results are very dependent on the model structure and initial parameters that are used. Nevertheless, the model illustrates that policies that are based on ethically superior standpoints may have detrimental distortionary effects in the dynamic setting.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 61-84 |
| Number of pages | 24 |
| Journal | Economic Systems Research |
| Volume | 18 |
| Issue number | 1 |
| DOIs | |
| State | Published - Mar 2006 |
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Keywords
- Dynamic input-output model
- Environmental responsibility
- International trade
- Technological change
ASJC Scopus subject areas
- Geography, Planning and Development
Cite this
Environmental responsibility and policy in a two-country dynamic input-output model. / Hoekstra, Rutger; Janssen, Marcus.
In: Economic Systems Research, Vol. 18, No. 1, 03.2006, p. 61-84.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Environmental responsibility and policy in a two-country dynamic input-output model
AU - Hoekstra, Rutger
AU - Janssen, Marcus
PY - 2006/3
Y1 - 2006/3
N2 - Increased spatial dependency of economic activities, as well as spatial differentiation of production and consumption, has implications for environmental policy. One of the issues that has gained importance is the responsibility for the emissions from products that cross national boundaries during the environmental policy's lifetime. This paper discusses the different ethical views of environmental responsibility. Furthermore, the policy measures that are associated with the different viewpoints are analyzed in a novel dynamic two-country two-sector dynamic input - output model. A numerical example is modeled to assess taxing schemes that are based on these ethical viewpoints. The results show that a tax on the 'embodied' environmental pressure, which is generally viewed as ethically preferable, is less effective that the current policy of taxing consumers of products. Our discussion however shows that these results are very dependent on the model structure and initial parameters that are used. Nevertheless, the model illustrates that policies that are based on ethically superior standpoints may have detrimental distortionary effects in the dynamic setting.
AB - Increased spatial dependency of economic activities, as well as spatial differentiation of production and consumption, has implications for environmental policy. One of the issues that has gained importance is the responsibility for the emissions from products that cross national boundaries during the environmental policy's lifetime. This paper discusses the different ethical views of environmental responsibility. Furthermore, the policy measures that are associated with the different viewpoints are analyzed in a novel dynamic two-country two-sector dynamic input - output model. A numerical example is modeled to assess taxing schemes that are based on these ethical viewpoints. The results show that a tax on the 'embodied' environmental pressure, which is generally viewed as ethically preferable, is less effective that the current policy of taxing consumers of products. Our discussion however shows that these results are very dependent on the model structure and initial parameters that are used. Nevertheless, the model illustrates that policies that are based on ethically superior standpoints may have detrimental distortionary effects in the dynamic setting.
KW - Dynamic input-output model
KW - Environmental responsibility
KW - International trade
KW - Technological change
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UR - http://www.scopus.com/inward/citedby.url?scp=33645125877&partnerID=8YFLogxK
U2 - 10.1080/09535310500440894
DO - 10.1080/09535310500440894
M3 - Article
VL - 18
SP - 61
EP - 84
JO - Economic Systems Research
JF - Economic Systems Research
SN - 0953-5314
IS - 1
ER -