A new Environmental Accounting Framework Using Externality Data and Input -Output Tools (EU)
Environmental extended IO tables and externality estimates are extremely useful for the use in and further development of socio-economic tools for sustainability impact assessment, esp. macroeconomic models like econometric models, partial market models or computable general equilibrium (CGE) models. DG JRC-IPTS uses POLES, GEM-E3 and CEPAM to support the EU policy-making process. The environmental extended IO tables provide a consistent data set that can be used to calibrate large scale CGE models. There are two general approaches to integrate the externalities estimates in econometric models or computable general equilibrium models: In ZEWs part of the project the use of the externality estimates especially in CGE models like CEPAM, PACE and GEM-E3 were explored. Furthermore, it was investigated to what extent more complex dose-response relationships and their impact valuation may be represented in reduced form to preserve transparency and operationality (in terms of dimensions) of integrated assessment accounting frameworks. The proposed workstream ensures a wide applicability of the data generated in the overall project for quantitative tools used by the European Commission.
Duration: 01.02.2007 - 31.08.2011