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When and How to Use Economy-Wide Models for Environmental Policy Analysis
Annual Review of Resource Economics ( IF 5.8 ) Pub Date : 2022-06-06 , DOI: 10.1146/annurev-resource-111820-015737
Jared C. Carbone 1 , Linda T.M. Bui 2 , Don Fullerton 3 , Sergey Paltsev 4 , Ian Sue Wing 5
Affiliation  

We describe the factors researchers should consider in deciding when and how to use computational general equilibrium (CGE) models for environmental policy analysis instead of partial equilibrium or engineering models. Special attention is given to modeling the social costs and benefits of regulations and the role played by labor markets. CGE models excel at quantifying interactions across different sectors of the economy, factor-market outcomes, and the distributional consequences of policy, all using a comprehensive set of the resource constraints faced by agents. The ceteris paribus nature of these experiments allows a skilled modeler to develop a systematic understanding of the connection between model assumptions and policy outcomes. Using CGE models to address environmental policy questions involves challenges, including the representation of narrow and technology-specific regulatory designs, data and aggregation issues, and the development of methods to improve model transparency and validity.

中文翻译:

何时以及如何使用整体经济模型进行环境政策分析

我们描述了研究人员在决定何时以及如何使用计算一般均衡(CGE)模型而不是部分均衡或工程模型进行环境政策分析时应考虑的因素。特别关注对监管的社会成本和效益以及劳动力市场所发挥的作用进行建模。 CGE 模型擅长量化不同经济部门之间的相互作用、要素市场结果以及政策的分配后果,所有这些都使用代理面临的一套全面的资源约束。在其他条件不变的情况下,这些实验的性质使熟练的建模者能够系统地理解模型假设和政策结果之间的联系。使用 CGE 模型解决环境政策问题涉及挑战,包括狭隘和特定技术监管设计的表示、数据和聚合问题,以及开发提高模型透明度和有效性的方法。
更新日期:2022-06-06
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