Perspectives on the Economics of the Environment in the Shadow of Coronavirus
In this paper, we use a multisectoral and multiregional model of the world economy to evaluate the short-term effects that the COVID-19 crisis may have on environmental pressures and resource consumption (measured in terms of water, air emissions and materials extraction). Specifically, we focus on the relationship between current and forecast changes in demand and mobility patterns in the EU27 + UK for 2020 and its effect on global resources through global supply chains. This integrated analysis could answer urgent research questions: What are the short-term impacts on emissions and resource consumption of the current and predicted declines in final demand? Do the impacts differ among environmental pressures? How elastic are environmental responses to demand drops? On the basis of these short-term responses, what is the relationship between economic growth and environmental pressure? Do these effects go beyond European countries through global supply chains?