Evaluation of Environment Preservation Policies Using A Rectangular Input-Output Systems with Environment Sectors

Abstract

Previous environmental assessment models based on the Input-Output System cannot deal the indirect effects of pollution emission from household explicitly, since the household sector is dealt in the final demand sector. This paper proposes a rectangular Input-Output System and introduces the recycle goods and pollutants into the endogenious sector. This system can deal the air pollution explicitly and solve the product mix problem of conventional I-O systemas well. The effects on environment of the recycle of steel/alminium cans and used paper from household have estimated in terms of air pollution.(CO2, NOx, SOx) The effects of less utilization of private car for commuting have also examined.