In this paper we develop a new form of economic – environmental input–output model to analyze the complicated interactions among economic sectors and environmental sectors. This model deals with both traditional economic sectors and the pollution elimination sector in terms of volume and value. The model also introduces policy parameters associated with pollution elimination into the framework to discuss its policy implication and to perform policy sensitivity analysis. Finally, this input–output model is applied to a specific area located in the northeast region of China to show how it works.
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