Economic—Environmental—Energy Interactions: Modeling and Policy Analysis

207 Pages·1980·4.94 MB·English

by  T. R. Lakshmanan

Studies in applied regional science
This series in applied regional, urban and environmental analysis aims
to provide regional scientists with a set of adequate tools for empirical
regional analysis and for practical regional planning problems. The
major emphasis in this series will be upon the applicability of theories
and methods in the field of regional science; these will be presented in
a form which can be readily used by practitioners. Both new
applications of existing knowledge and newly developed ideas will be
published in the series.
STUDIES IN APPLIED
REGIONAL SCIENCE 17
Editor-in-Chief
P. Nijkamp
Free University, Amsterdam
Editorial Board
o
A. E. Andersson
University of Gothenburg, Gothenburg
W. Isard
Regional Science Institute, Philadelphia
L.H. Klaassen
Netherlands Economic Institute, Rotterdam
1. Masser
State University, Utrecht
N. Sakashita
Osaka University, Osaka
ECONOMIC
ENVIRONMENTAL
ENERGY
INTERACTIONS
Modeling and
Policy Analysis
T.R. LAKSHMANAN
P. NIJKAMP
Editors
GMartinus GNijhoff Publishing
Boston/The Hague/London
Distributors for North America:
Martinus Nijhoff Publishing
Kluwer Boston, Inc.
160 Old Derby Street
Hingham, Massachusetts 02043
Distributors outside North America:
Kluwer Academic Publishers Group
Distribution Centre
P.O. Box 322
3300 AH Dordrecht, The Netherlands
Library of Congress Cataloging in Publication Data
Main entry under title:
Economic-environmental-energy interactions.
(Studies in applied regional science; v. 17)
Bibliography: p.
I. Environmental policy-Mathematical models
Congresses. 2. Energy policy-Mathematical models
Congresses. 3. Economic policy-Mathematical models
Congresses. I. Lakshmanan, T. R., 1932-
II. Nijkamp, Peter. III. Series.
HC79.E5E27 301.31'01'51 79-19016
ISBN-13: 978-94-009-8741-8 e-ISBN-13: 978-94-009-8739-5
DOl: 10.1007/978-94-009-8739-5
Copyright @ 1980 by Martinus Nijhoff Publishing
Softcover reprint of the hardcover 1st edition 1980
No part of this book may be reproduced in any form by print,
photoprint, microfilm or any other means, without written
permission from the publisher.
CONTENTS
INTRODUCTION
1. INTEGRATED MODELS FOR ECONOMIC-ENERGY-
ENVIRONMENTAL IMPACT ANALYSIS 7
T.R. Lakshmanan and Sam Ratick
1. Introduction 7
2. The Evolution of Economic-Energy-Environmental
Modelling 10
3. SEAS: An Integrated Economic-Environmental-Energy
Model 14
3.1 General 14
3.2 National Economic Subsystem 17
3.3 National Environmental Subsystem 20
3.4 Regional Environmental Subsystem 21
3.5 Energy Subsystem 22
3.6 Raw Material Subsystem 22
3.7 Concluding Remarks 22
4. An Application of SEAS 23
4.1 Introduction 23
v
vi CONTENTS
4.2 Economic Effects 26
4.3 Environmental Effects 31
4.4 Concluding Comments 35
5. Notes 36
6. References 37
2. OPERA TIONAL METHODS FOR STRATEGIC
ENVIRONMENT AL AND ENERGY POLICIES 40
P.J.J. Lesuis, F. Muller, and P. Nijkamp
1. Introduction 40
2. An Integrated Input-Output Model with Energy and
Pollution 41
3. Price Effects and Technology Shifts 44
4. Composite Scenarios for Long-term Environmental and
Energy Policies 49
5. Applications 57
6. Conclusions 61
7. Appendix: Preliminary Estimates of the Parameters of
the Translog Price Possibility Frontier 65
8. Notes 71
9. References 71
3. COSTS AND BENEFITS OF WATER POLLUTION
CONTROL 74
William D. Watson, Jr.
1. Introduction 74
2. Methods 77
3. Results 83
3.1 Emissions and Regional Damages 83
3.2 Control Costs, Damage Costs, and Benefits 89
4. The Gains from Additional Information 110
5. Implications and Conclusions 113
6. Notes 113
7. References 114
4. LONG-RUN ENERGY POLICIES IN AN ECONOMIC
SETTING 117
L.H. Klaassen and J.H.P. Paelinck
1. Introduction 117
2. Preliminary Thoughts 118
CONTENTS
Vll
2.1 Energy as a Production Factor 118
2.2 Energy Price and Level of Knowledge 121
2.3 An Analytical Model 122
2.4 Provisional Conclusion: Testing of Raw Material
Models Required 126
3. Further Investigations 127
3.1 Economics of Alternative Energy Sources 128
3.2 A Simple Model 130
3.3 A One-period Horizon Programming Model 131
3.4 A Two-period Transition Model 133
4. Prices Revisited 135
4.1 Prices of Raw Materials 135
4.2 Compensating for Price Increases 137
4.3 Measures Against Inflation 140
4.4 A Model J42
5. Conclusions 144
6. Notes 146
7. References 147
5. AN INTEGRATED INTERREGIONAL MODEL FOR
POLLUTION CONTROL 149
Wim Hafkamp and Peter Nijkamp
1. Introd uction 149
2. Multidimensional Welfare Profiles 150
3. An Integrated Interregional Model of Production
and Pollution 153
4. Interactive Compromise Policy Models 157
5. An Empirical Illustration of an Interactive
Compromise Model 162
6. Concluding Remarks 169
7. Notes 170
8. References 170
6. THE ENVIRONMENTAL IMPACT ISSUES IN ENERGY
DEVELOPMENT IN THE UNITED STATES 172
Peter House
1. Introduction 172
2. The 1977 ERDA National Plan 173
3. To the Present 179
4. EDP System 179
5. EDP Contents and Procedures 180
viii CONTENTS
6. Technology Descriptions 181
7. Identification of Environmental Concerns 182
8. Determination of Significance of Environmental
Con~erns 182
9. Technology Assessment 183
10. Summary and Conclusions 184
11. Notes 185
7. DUTCH ENERGY POLICIES FOR THE FUTURE 186
A.A. T. van Rhijn
1. Introduction 186
2. Energy Supply and Energy Policy in the Netherlands 188
3. Availability and Security of Supply 189
4. Feasibility of Application 191
5. Economics of Energy Sources 192
6. Environmental Impact and Risks of the Source 194
7. The Energy Mix Policy: Spreading Negative Effects 196
8. Guideline for Future Energy Policy 197
8.1 Natural Gas 197
8.2 Coal 197
8.3 Nuclear 198
ECONOMIC-ENVIRONMENTAL-ENERGY
INTERACTIONS
INTRODUCTION
This publication is concerned with two major current debates in public
policy in all affluent societies. One is the widespread concern with the quality
of the natural environment-the quality of air, water, land, and wilderness
areas-which has expressed itself in the passage and implementation in
recent years of a variety of environmental laws and regulations. A second
debate concerns the adequacy of energy resources to meet the requirements
of a growing economy.
The requirement that industries must abate environmental pollution leads
to increased costs of production and, in turn, to higher prices, falling output
in those industries, and reduced employment and income in the region where
such industries are located. There may be, at the same time, growth in indus
tries that supply pollution abatement equipment and services in those or
other regions. Over time, the health and economic benefits of higher envi
ronmental quality express themselves in changing patterns of consumption.
Thus, as environmental standards pertaining to industries, automobiles, and
municipalities are implemented, the combination of goods and services pro
duced in the nation changes. These changes are reflected in the regional
economies, depending upon their industrial mix, incomes, and consumption
patterns.