Published:22 December 2020
Authors: Yuli Shan, Jiamin Ou, Daoping Wang, Zhao Zeng, Shaohui Zhang, Dabo Guan & Klaus Hubacek

https://www.nature.com/articles/s41558-020-00977-5

Scenarios of global lockdown and effects on CO2 emissions

Economic impacts model

ARIO model：Adaptive Regional Input-Output Model can be used to analyse the disaster-induced influence on regional economy.

The Leontief production function does not allow for substitution between inputs.

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Scenarios of lockdown

  • Lockdown periods
  • Strictness of the first lockdown period
  • Strictness of future lockdown periods

Labour loss dominates the economic loss in the model.

Factors of production and production function

In economics, factors of production, resources, or inputs are what is used in the production process to produce output—that is, finished goods and services.

There are two types of factors: primary and secondary. The previously mentioned primary factors are land, labour and capital. Materials and energy are considered secondary factors in classical economics because they are obtained from land, labour, and capital. The primary factors facilitate production but neither becomes part of the product (as with raw materials) nor becomes significantly transformed by the production process (as with fuel used to power machinery).

In economics, a production function gives the technological relation between quantities of physical inputs and quantities of output of goods