It is generally believed that there exists a trade-off between economic activity and environmental quality since pollutants are generated in the process of production and consumption of commodities. The literature shows, however, that there have been ...
It is generally believed that there exists a trade-off between economic activity and environmental quality since pollutants are generated in the process of production and consumption of commodities. The literature shows, however, that there have been relatively few empirical attempts to analyse this trade-off relationship. This tendency may stem from the fact that there is insufficient data to represent the environmental sector. This paper measures the impacts of the water-quality enhancing policy on the Korea economy of 13 region using the environmental sector endogenized multi-region input-output (ESEMRIO) model which was developed by Kim and Yun (2000). This paper specifically shows it impacts on the policy in terms of price change, industrial outputs and employments.