TITLE:
Blue Economy Innovation Impact Assessment with the GMR-Europe Model
AUTHORS:
Attila Varga, Orsolya Hau-Horváth, Norbert Szabó, Péter Járosi
KEYWORDS:
GMR Model; Blue Economy; Computable General Equilibrium Models; TFP; Innovation
JOURNAL NAME:
Technology and Investment,
Vol.4 No.4,
October
30,
2013
ABSTRACT:
This paper introduces and applies a model system that is suitable
for the impact assessment of Blue Economy innovations. Our contribution to the
literature is threefold. First, we build a multi-sector computable general
equilibrium (CGE) model, which provides the theoretical frame for studying the
economic impacts of using waste as a production input. Second, we create an
empirical methodology through which new technologies of Blue Economy can be
concretely accounted for in regional input-output tables. Since Blue Economy
innovations are largely built on local inputs, their effects are primarily
local. Given that interregional spillovers of local impacts might also be
significant, through interregional trade or migration, we applied a modelling
approach that is able to follow complex spatial processes. The broader model
framework chosen is the GMR-Europe model.