Determination of Income, Production, and Employment Under Pollution Control: An Input-Output Approach

It can be shown that a variation of the multiplier approach solves the Leontief pollution model in a more directly interpretable and computationally efficient manner than the conventional method of directly using the augmented Leontief inverse matrix. The solution of each endogenous variable of the model can be expressed in terms of the non-augmented Leontief inverse, exogenous variables, and two important multipliers, "the pollution control multiplier" and "a modified Keynesian multiplier," modified by pollution control. The so-called induced effect and the effect of pollution control on a given economy can be separated from the model.