Ecological EconomicsLecture 12

Tiago DomingosAssistant Professor

Environment and Energy SectionDepartment of Mechanical Engineering

Doctoral Program and Advanced Degree in Sustainable Energy SystemsDoctoral Program in Mechanical Engineering

Doctoral Program in Environmental Engineering

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READINGS

• Common and Stagl– Chapter 5, Economic accounting

ASSIGNMENTSCommon and Stagl, Chapter 5, Discussion Topic 1, Exercise 1

Next LectureOverview

• Input-output analysis– Comprehensive picture of transactions in the economy– Allows us to trace the pathways of dependence of the

economy on natural resources and of its effects on the environment (direct and indirect effects)

• National income accounting– The basic structure for calculating economics indicators, e.g.,

GDP– These indicators have several flaws, namely (but not only) in

dealing with the environment

• Relative prices– Nominal vs. current– Exchange rates– Purchasing power parity– Tradeable vs. non-tradeable goods

Next LectureInput Output Analysis

• The fundamental tool: the input-output table