After reading this article you will learn about the input-output analysis and its importance in ecological study. Input-output analysis is a technique that was invented by Prof. Wassily Leontief in the year 1951. This technique deals with the type of problems, one of which may be defined in his own following words: "What should be the level of output of [...]
This article throws light upon the top two measures used to control pollution and externalities. The measures are: 1. Imposing a Pigouvian Tax 2. Environmental Regulation. Measure # Imposing a Pigouvian Tax: A "classical" representation to the externality problem, due to Pigou (1920), is depicted in Figure 1. The horizontal axis denotes output of a competitive industry, say steel, which [...]
This article throws light upon the top three input-output models. The models are: 1. The Cumberland - Isard/Daly I/O Models 2. The Modified Leontief Abatement Model 3. The Ayres-Kneese Model. 1. The Cumberland - Isard/Daly I/O Models: John Cumberland, in 1966 was one of the first to amend the famous Leontief Input-Output model to include pollutants and other such externalities [...]