Dynamic Ecosystem Simulation Model based on the Principle of Materials Balance

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The optimal taxs of the Pigouvian type on the emission of air pollutants (SOX,NOX,CO2) are calculated based on the non-linear multi-sector expanded Input-Output Model which is specified for the economy of Japan in 1985. It is estimated that the taxs of 1,300yen/kg (SOX) and 9,000yen/kg (NOX) on the emission of SOX and NOX,respectively, will decrease the emission of CO2, SOX,and NOX by 12.0,50.0, and 0.5 percent, respectively, while keeping the GNP level of 1985 (reported at the 33rd Annual Meeting of the Japan Section of the Regional Science Association (Nihon-Chiiki-Gakkai)).The feasibility of the Plan for the Decreasing Air Pollutants in Taiwan is analyzed based on the Multi-regional and Multi-modal Dynamic Network Model for the Optimal Control of the Environment which is specified for the economy of Taiwan in 1991. It is estimated that it is necessary to reduce the GNP by 12 percent in order to realize the Plan and it is suggested that it is more acceptable for the Taiwan economy to weaken the constraints of the total emission of air pollutants of the Plan (reported at the 33rd Annual Meeting of the Japan Section of the Regional Science Association (Nihon-Chiiki-Gakkai)).Using the spatial model, it is proved that the optimum will be uniquely attained through the market equilibrium irrespective of the adopted system of the Pigouvian taxs and subsidies if the income re-distribution is made properly (reported at the 14th PRSC Meeting of RSAI).