Modeling the Environment-Economy Interaction for Austria in a Trade-Focused Computable General Equilibrium Framework

  • Karl W. Steininger
Part of the Contributions to Economics book series (CE)


To analyze the impacts of human economic action and policy on the environment, a very broad range of tools has been developed, especially within the last two decades and within both the fields of economics and ecology Mankind’s living conditions are increasingly influenced by the state of the environment; not surprisingly the interest in how this state of the environment is affected by mankind has increased substantially.1


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  1. 1.
    Bundesministerium fir Umwelt (1993), Ökonomisch-Ökologische Modellbildung, provides an extensive overview of the literature that emphasizes the economic analysis in this interlinkage, compares approaches available and evaluates potential applications for Austria.Google Scholar
  2. 2.
    For an introduction see for example Forrester (1968), Principles of Systems.Google Scholar
  3. 3.
    In natural resource discussion most prominent: Meadows et al (1972), The Limits to Growth, and Meadows and Meadows (1992), The New Limits to Growth.Google Scholar
  4. 8.
    Especially in development economics often behavior with respect to inflation (e.g investment despite hyperinflation) requires non-neutrality of money and therefore has been introduced in various models. For a study in the European context focusing on this aspect see Capros (1992), constructing a European multicountry CGE with explicit modeling of the monetary sector.Google Scholar
  5. 9.
    Fullerton, King, Shoven and Whalley (1981) and Fullerton, Shoven and Whalley (1983) are the two first approaches of that kind, analyzing tax policy. For an Austrian environmental policy application see Farmer and Steininger (1994), expanding the model presented in this report for dynamic analysis.Google Scholar
  6. 10.
    Auerbach and Kotlikoff (1983) and Ballard (1983) started this tradition. For a survey of intertemporal models in the Shoven-Whalley tradition see Preira and Shoven (1988). For a dynamic optimizing model on Austria see Keuschnigg and Kohler (1993).Google Scholar
  7. 11.
    This distinction follows Adelman and Robinson (1978).Google Scholar
  8. 12.
    Dervis, de Melo and Robinson (1982), pp. 486ff.Google Scholar
  9. 13.
    For an introduction see Dixon et al. (1982).Google Scholar
  10. 15.
    This algorithm is used in the original work of Adelman and Robinson (1978), Dervis (1975) and Dungan (1980) for example.Google Scholar
  11. 16.
    The probably still best survey is Shoven and Whalley (1984).Google Scholar
  12. 17.
    For example, Sherman Robinson, courses on CGE modeling in 1991, 1992.Google Scholar
  13. 18.
    For example, Bergman (1990), pp. 24–25, points out this direction.Google Scholar
  14. 20.
    For an overview see Schróder (1990), chapter 1.2.Google Scholar
  15. 28.
    Monetäre Aufwendungen für den energetischen Endverbrauch im Jahr 1988, ÖSTAT (1992b): 1027–1035.Google Scholar
  16. 29.
    CO2-Emissionsentwicklung und Prognose für Österreich, UBA (1992): 6.Google Scholar
  17. 30.
    Energieversorgung Österreich, Jahreshefte 1989, 1991, Tab. Gesamte Elektrizitätsversorgung in Österreich.Google Scholar
  18. 32.
    Derived on the basis of ÖSTAT (1993), Tab. 15.2. Beschäftigung and Arbeitsmarkt.Google Scholar
  19. 33.
    The 1964–1992 average yearly growth rate has been higher, but growth rates are declining since the early seventies.Google Scholar
  20. 35.
    At the EC environmental ministerial council Oct. 5, 1993, for example, the German environmental minister Klaus Töpfer affirmatively launched a corresponding proposal. Salzburger Nachrichten Oct. 6, p. 6.Google Scholar
  21. 38.
    In the current version NO, and SOX emissions are calculated simply on the basis of constant (1991 based) fuel emission coefficients.Google Scholar

Copyright information

© Physica-Verlag Heidelberg 1995

Authors and Affiliations

  • Karl W. Steininger
    • 1
  1. 1.Department of EconomicsUniversity of GrazGrazAustria

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