TITLE:
Modification of the Leontief-Ford Input-Output Model for the Green Economy Goals and Environment Protection
AUTHORS:
Ivan Potravny, Andrey Gusev, Vasily Stoykov, Violetta Gassiy
KEYWORDS:
Ecological Modernization of Economy, Economic Loss, Environmental Pollution, Green Economy, Leontief-Ford Model
JOURNAL NAME:
Journal of Geoscience and Environment Protection,
Vol.5 No.11,
November
8,
2017
ABSTRACT: The economics’ ecological modernization approach based on the input-output balance model is considered in the paper. The government measures on Russian Federation’s transition to green economy on reducing of greenhouse gas emissions are analyzed. In an article for green economy evaluation, including greenhouse gas emissions per capita and per unit of GDP, the indicator of the production environmental costs is proposed to include. The authors suppose adding and to modernize the Leontief-Ford model of input-output balance by economic evaluation of the environment pollution effects. This model is proposed to consider macro-economic assessment of environmental damage, health deterioration due to environmental pollution, as well as the use costs of the environmentally friendly technologies, the environmental and energy innovations’ implementation, climate change. The proposed modified model of environmentally oriented input-output balance can be used in the economic compensation system implementation on natural capital use and ecosystem services’ consuming in countries and their regions. The modified Leontief-Ford model proposed in the paper can be used for green economy development calculating, for example in Russia during the development of measures for the environment and economic development. Also this paper opens discussions for opportunities of the further possible integration of the theoretical models for environment protection decision-making.