An Approach to Economics-Environmental Relations from Expanding the Input-Output System
25/08/02021 08:39

Abstract

In the last few decades, the relationship between economy and environment has become the concern of many scholars, there have been many studies linking economic development and environmental pollution. Even the United Nations has introduced an economic-environmental linkage framework such as System of Environmental-Economics Accounts (SEEA) that is compatible with the System of National Accounts (SNA). This study attempts to provide a theoretical framework based on Miyazawa’s ideas on interregional model and demographic-economic model in order to improve the integration between economy and waste.
Keywords
Economic, Environmental, Input-Output, Matrix, Multipliers 
1. Introduction
For decades, scholars have attempted to propose models of the linkage between the economy and the environment through Leontief (1970)’s input-output model. It was he who first came up with the idea of combining economics and environment in a scientific activity (seminal paper). Leontief and a number of later scholars such as McNicoll & Blackmore (1993) and McGregor et al. (2001) used a direct production waste coefficient matrix to do empirical studies applying such an approach to modeling air pollution in Scotland. This type of work quantifies the impact of economy to the environment, in terms of emissions. However, these studies do not track further environmental responses to the economy, regarding the activity generated in environmental cleanup. The input-output model can be extended to study this problem with pollution re-duction activities.
This research tries an attempt, a more detailed introduction to the literature related to the linkage between the economy and the environment through Leontief’s input-output model.
There are some applications of Leontief’s environmental input-output model to study the impact of economic activities on the environment through air pollutions in Vietnam such as studies of Trinh & Phong (2013), Trinh & Hoa (2017), Hung & Trinh (2019).
Studies around Leontief’s input-output model include Flick (1974); Steenge (1978); Lowe (1979); Qayum (1991); Arrous (1994) and Luptacik & Böhm (1999). Allan, Hanley, McGregor, Swales, & Turner (2004). These studies extend and applying the Leontief system pollution model in both sides: Emission economy and waste treatment.
The using of input-output system to combine economic and environment is also given in “System of Environmental-Economic Accounting (SEEA)” by United Nation. This issue is also mentioned in “Handbook of input-output table compilation and analysis” by United Nation.
However, these extensions do not yet have the perfect combination of environmental and economics by “inter-environmental-economics” type. This study tries an attempt to extend Leontief’s input-output model according to type of Miyazawa’s (1976) inter-regional and demographic-economic models in order to linkage between environmental and economics in a more uniform way