Edited by Roberta Capello and Peter Nijkamp
Jan Oosterhaven and Karen R. Polenske 21.1 Introduction Economic impact analysis has a long tradition in the input–output (IO) ﬁeld. A search on Google in May 2007 for impact analyses and IO models produced 1 090 000 records. Many were undoubtedly duplicates or referred to only one or the other of these terms, but we were nevertheless impressed with the proliferation of this technique. Of the various applications of IO models, impact analysis is undoubtedly the most widely used. Many of the early applications estimated economic impacts, but soon analysts were also studying environmental, energy, transportation, land-use and other types of impacts, and these have proliferated greatly beginning in the 1990s. With the recognition of the important worldwide climate change eﬀects, we anticipate that analysts will conduct even more environmental- and energy-impact studies than before. Underlying the regional analyses is the important basic theory of input–output and socio-economic accounting. We begin by reviewing this basic theory in terms of some of the signiﬁcant methodological debates that occur. Although not all developments are region-speciﬁc, we cover them because regional analysts are beginning to adopt these theoretical advancements in their work. For the applications, we restrict our review to regional and multi-regional impact analyses and the development of computer programming packages that help analysts to conduct such studies quickly. 21.2 Theory of demand-driven IO and SAM impact analysis One of the most frequently heard criticisms of IO analysis concerns the assumption that the input–output coeﬃcients...
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