1. Ecological Economics Lecture 12 Tiago Domingos Assistant Professor Environment and Energy Section Department of Mechanical Engineering Doctoral Program and Advanced Degree in Sustainable Energy Systems Doctoral Program in Mechanical Engineering Doctoral Program in Environmental Engineering

2. Next Lecture READINGS Common and Stagl –Chapter 5, Economic accounting ASSIGNMENTS Common and Stagl, Chapter 5, Discussion Topic 1, Exercise 1

3. Next Lecture Overview Input-output analysis –Comprehensive picture of transactions in the economy –Allows us to trace the pathways of dependence of the economy on natural resources and of its effects on the environment (direct and indirect effects) National income accounting –The basic structure for calculating economics indicators, e.g., GDP –These indicators have several flaws, namely (but not only) in dealing with the environment Relative prices –Nominal vs. current –Exchange rates –Purchasing power parity –Tradeable vs. non-tradeable goods

4. Next Lecture Input Output Analysis The fundamental tool: the input-output table