Motivated by both the need to model recent structural economic changes and the
need to understand better the nature of environmental–economic interactions, this
paper introduces a continuous-time regional econometric input–output model for
the Chicago economy that can be used to analyze, at disaggregated sectoral and
temporal levels, the economic and environmental implications of changes exogenous
to the economy. The model’s solution yields estimates of emission inventories, which
may be used to analyze environmental implications of various economic changes and
policy restrictions. This model is the frst integrated economic–environmental model
of which we are aware that has been formulated and estimated in continuous time for
the regional economy of a metropolitan area. We believe that the model’s formulation
will enable it to enjoy greater compatibility with natural science-based models, which
share such a formulation and fexibility in projecting future emissions corresponding to
alternative future economic scenarios and in evaluating emissions policies relevant to
such scenarios

• Structural change in the Chicago region and the impact on emission inventories in a continuous‑time modeling approach