AN ENVIRONMENTAL/INPUT-OUTPUT LINEAR PROGRAMMING MODEL TO REACH THE TARGETS FOR GREENHOUSE GAS EMISSIONS SET BY THE KYOTO PROTOCOL

The Kyoto Protocol contains legally binding targets for greenhouse gas (GHG) emissions for industrialized countries. The importance of this agreement and the elaboration of a climate change policy make it necessary to define and establish national policy measures and to bring into force environmental regulations that will reduce GHG emissions. Extending our knowledge of the economic-ecologic relationships that exist within the production sphere can assist in defining and implementing successful environmental policies. In this paper, an Environmental/Input-Output linear programming model is proposed. To develop the model we consider the input-output model as a linear programming problem combining two types of restrictions: environmental restrictions establishing GHG emission targets, and economic restrictions. The model shows how targets for the emissions of GHGs may be reached and can affect production activity composition.