Opportunity Cost Estimation of Regular Economic Shutdown on Output, Environment, and Income

Date

6-2024

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Emmanuel Genesis Andal

Committee Member

Veronica I. Castillo, Gideon P. Carnaje, Maria Angeles O. Catelo

Abstract

The study focused on estimating the opportunity cost of a regular economic shutdown on production, environment, and income using ex-ante opportunity cost analysis in the macro-economic context of the Philippines. Using degrowth as a framework and setting policy assumptions similar to Sunday trade bans, or Sunday blue laws, and enhanced community quarantine (ECQ) during the pandemic, the study found a 9.49% reduction in GDP and 10.5% reduction in revenue from 964,299 identified non- essential establishments from MSMEs and large enterprises. Around 4.5 billion kg of CO2e and 6.23 billion kWh of electric use can be saved from having a regular economic shutdown for all 52 Sundays of a year. A worker may lose Php 595.28 of his or her daily income on a regular economic shutdown if the regular economic shutdown is implemented asynchronously to the employee's rest day. The study utilized stringent policy assumptions, but future policymakers can consider exempting certain industries and certain numbers of Sundays from the regulation. This study aims to contribute to the discussion of degrowth and can be a basis for future research on policy making on non- working Sunday or Sunday trade bans.

Language

English

LC Subject

Negative Growth (Economics)

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 E2 C37

Notes

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Document Type

Thesis

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