Modification of the Input- Output Models to Meet Environmental Standards in the Resistance Economy

Document Type : Original Article

Authors

1 Assist. Profe. Department of Agricultural Economics, Shahr- e- Qods Branch, Islamic Azad University, Tehran, Iran

2 Assist. Profe. Department of Accounting, Shahr- e- Qods Branch, Islamic Azad University, Tehran, Iran

3 Assist. Profe. Department of Agricultural Management, Shoushtar Branch, Islamic Azad University, shoushtar, Iran

Abstract

Import substitution strategy is one of the policies proposed for the resistance economy. In the current situation where the sanctions are imposed from outside of the economy, import substitution strategy and specially, the final import substitution policy is inevitable. The growth of economic activities in the final import substitution process to achieve the goals of the resistance economy could leads to increased emissions of air pollutants and adverse environmental effects. Hence, in this study, environmental issues, along with economic goals have been explored in the final import substitution policy to be able to provide appropriate solutions that meet both environmental standards and important categories of the economy.
To achieve this goal, modified environmental input- output models have been used to estimate the value added, employment and emissions of pollutants in seventeen economically active sectors in the field of final import substitution. In order to generalize the common data- output model to environmental issues, an interactive model with the creation of the fourth additional block has been used to include the environmental output. Economic information is extracted from the usual input- output tables and reports of the Ministry of Industry. information related to the environmental sector is provided by the energy balance sheet. Finally, The Leontief Production Function is used to examine the various effects of the development of final import substitution based on data- output analysis. This function is written according to the macro accounting model of growth resources. By quantitative explanation of the exchanges between economic and environmental goals, we can divide the sectors into four groups (low economic potential and high pollutants, low economic potential and low pollutants, high economic potential and high pollutants, high economic potential and low pollutants).
According to the findings of the study, the development of final import substitution policy is strongly recommended in high economic potential and low pollutants of the economy (Pharmaceutical and health products, textile products, wood and paper, food and beverage products), because final import substitution policy could help to strengthen the internal relationship of these sectors with other industries in the country and growth indigenousness and indirectly reduce the emission of pollutants. This issue is more important in pharmaceutical and health, food and beverage products, due to the strong outsourcing economic relationship and the weak environmental relationship with other sectors. Because at the same time it creates the most added value and indirect employment and also the least indirect environmental damage occurs.
 

Keywords

References

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Environmental Researches
Volume 12, Issue 24
Recerches
March 2022
Pages 281-299

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