Emissions to the Air and the Allocation of GDP: Medium Term Projections for Sweden in Conflict with the Goals of CO2, SO2 and NOx Emissions for Year 2000

Implications for CO2, SO2 and NOx emissions of the Government`s medium term economic projections are assessed considering Sweden`s environmental goals. Data from the first environmental accounting matrix of Sweden is exploited within the framework of the inter industry model to give emission multipliers for various components of aggregate demand. It is evident in view of these emission multipliers, that the outlined macroeconomic development does not conform with Sweden`s environmental goals. The oil price and structural changes assumed in the economic projections still further stress the need for strong environmental policy measures to attain the emission goals.