Modelling of technological changes in “input-output” balance model in terms of the paris agreement

Volodymyr Ivanovych Kudin, Andrii Mykhailovych Onyshchenko


Introduction.  Prospective analysis of contemporary both theoretical and practical economy demonstrates the growing trend of taking into account social factors and life support on Earth on a global scale.  It is expected that in the nearest future this trend will occupy a major position in the global economy and will significantly determine the international economic relations. The priority of ensuring the future full of value world society serves as the forefront of a globalization of world economy and international economic relation.

Purpose.  In this context the consideration of environmental factors in macroeconomics and a specific problem of the role and place of the environmental component become very important.  Accordingly, it becomes especially important to develop a new conceptual approach to environmental resource as current economic category. The level of consideration of this problem must be reduced in order to develop a new concept of ecological economics, international economic relations, to find optimal ways of intergovernmental cooperation on environmental protection, resource conservation and low-waste technologies.

Method (methodology).  The method of economic theory, method of economic mathematical modeling, matrix theorymethod, method of system analysis have been used in order to obtain the results of the research.

Results.  In this article it is proposed a modified balance ecological and economic "input-output" model, which is based on limits on greenhouse gas emissions. These limits are established by the Paris Agreement.  The conditions for the existence of the productivity model, which provides non-negativity of the economic and environmental performance, are determined.  The mathematical apparatus of determining the change in the volume of gross output of primary and secondary production in the event of changes in the sector structure is considered. 


sustainable development; the Paris Agreement; ecological and economic system; Leontief "input-output" model; Leontief-Ford "input-output" model; simulation

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