Browse > Article
http://dx.doi.org/10.11001/jksww.2015.29.2.171

Economic Effects of Sewage and Wastewater Treatment Service Sector: An Inter-industry Analysis  

Park, So-Yeon (Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology)
Lim, Seul-Ye (Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology)
Yoo, Seung-Hoon (Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology)
Publication Information
Journal of Korean Society of Water and Wastewater / v.29, no.2, 2015 , pp. 171-182 More about this Journal
Abstract
The economic effects of sewage and wastewater treatment service (SWTS) sector on other sectors have been rarely investigated in the literature. This paper attempts to apply an inter-industry analysis to looking into the economic effects of the SWTS sector. To this end, the most recently published 2012 input-output table is used here. In particular, the SWTS sector is specified as exogeneous to identify the economic effects of the SWTS sector on other sectors. Production-inducing effect, value-added creation effect, and employment-inducing effect are quantified based on demand-driven model. Supply shortage effect and price pervasive effect are also analyzed employing supply-driven model and Leontief price model, respectively. The results show that production-inducing effect and value-added creation effect of a unit of investment or production in SWTS sector are estimated to be 1.7076 and 0.7392, respectively. The employment-inducing effect of one billion of investment or production in the SWTS sector is computed to be 11.0498 persons. The shortage effect of the SWTS sector amounts to 0.8417 won. The overall price effect of the 10% increase in the price of SWTS sector is calculated to be 0.0115%. This quantitative information can be utilized in predicting the economic effects of the SWTS sector-related activities or policy-making.
Keywords
sewage treatment; economic effects; inter-industry analysis; exogenous specification;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
연도 인용수 순위
1 Kim, K.H, Yoo, S.H.(2013), Economies of Scale in the Sewerage Treatment Sectors of Cheonla Province Area, Journal of Korean Society of Water and Wastewater, 27(1). pp.11-20.
2 Yoo, S.H., Yang, C.Y.(1999), Role of Water Utility in the Korean National Economy, International Journal of Water Resources Development, 15, pp.527-542.   DOI
3 Yoo, S.H, Heo, J.Y, Kim, K.J.(2004), The Role of the Wireless Communications Industry in the Korean National Economy : An Input-output Analysis, Journal of Industrial Economics and Business, 17(5), pp.1593-1612.
4 Yoo, S.H, Lim, E.S, Ku, S.J.(2008), An Analysis on the National Economic Impacts of the Advertising Industry, Advertising Research, 78, pp.189-214.
5 Bank of Korea.(1987) Intorduction to Input-Output Analysis.
6 Bank of Korea.(2003) 2000 Input-Output Table.
7 Bank of Korea.(2013) 2011 Input-Output Table.
8 Bank of Korea.(2014) 2012 Input-Output Table.
9 Davis, H. C., Salkin, E. L.(1984), Alternative Approaches to the Estimation of Economic Impacts Resulting from Supply Constraints, Annals of Regional Science, 18, pp.25-34.   DOI
10 Ghosh, A.(1958). Input-output Approach to An Allocative System. Economica, 25, 58-64.   DOI
11 Howe, C. W., Smith, M. G.(1994), The Value of Water Supply Reliability in Urban Water System, Journal of Environmental Economics and Management, 26, pp.19-30.   DOI
12 Hirschman, A. O.(1958), The Strategy of Economic Development, New Haven: Yale University Press
13 Haruvy, N.(1997), Agricultural Reuse of Wastewater: Nation-wide Cost-benefit Analysis, Agriculture, Ecosystems & Environment, 66, pp.113-119.   DOI
14 Osterhaven, J.(1996), Leontief versus Ghoshian Price and Quantity Models, Southern Economic Journal, 62, pp.750-759.   DOI   ScienceOn
15 Osterhaven, J.(1988), On the Plausibility of Supply-driven Input-output Model, Journal of Regional Science, 28, pp.203-217.   DOI
16 Wu, R. H., & Chen, C. Y.(1990), On the Application of Input-output Analysis to Energy Issues. Energy Economics, 12, 71-76.   DOI
17 Rose, A., Allison, T.(1989), On the Plausibility of the Supply-driven Input-output Model: Empirical Evidence on Joint Stability, Journal of Regional Science, 29, pp.451-458.   DOI
18 Miller, R. E., & Blair, P. D.(1989) Input-output Analysis: Foundations and Extensions. New Jersey: Prentice-Hall.