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Measuring Sustainable Development: The Use of Computable General Equilibrium Models

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  • Böhringer, Christoph
  • Löschel, Andreas

Abstract

This paper advocates computable general equilibrium models as a methodological tool that is particularly suitable for measuring the impacts of policy interference on the three dimensions of sustainable development, i.e. environmental quality, economic performance (gross efficiency) and equity. These dimensions are inherently intertwined and subject to trade-offs. Computable general equilibrium models can incorporate various important sustainable development indicators in a single consistent framework and allow for a systematic quantitative trade-off analysis.

Suggested Citation

  • Böhringer, Christoph & Löschel, Andreas, 2004. "Measuring Sustainable Development: The Use of Computable General Equilibrium Models," ZEW Discussion Papers 04-14, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:2347
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    References listed on IDEAS

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    1. Hertel, Thomas W., 2002. "Applied general equilibrium analysis of agricultural and resource policies," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 26, pages 1373-1419, Elsevier.
    2. Hertel, Thomas W., 2002. "Applied general equilibrium analysis of agricultural and resource policies," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 26, pages 1373-1419, Elsevier.
    3. Vennemo, Haakon, 1997. "A dynamic applied general equilibrium model with environmental feedbacks," Economic Modelling, Elsevier, vol. 14(1), pages 99-154, January.
    4. Goulder Lawrence H., 1995. "Effects of Carbon Taxes in an Economy with Prior Tax Distortions: An Intertemporal General Equilibrium Analysis," Journal of Environmental Economics and Management, Elsevier, vol. 29(3), pages 271-297, November.
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    Cited by:

    1. Lorenza Campagnolo & Carlo Carraro & Marinella Davide & Fabio Eboli & Elisa Lanzi & Ramiro Parrado, 2016. "Can climate policy enhance sustainability?," Climatic Change, Springer, vol. 137(3), pages 639-653, August.
    2. Kurt Kratena & Michael Wüger, 2008. "Combining a Demand System with the Household Production Approach. Modelling Energy Demand in Selected European Countries," WIFO Working Papers 311, WIFO.

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    More about this item

    Keywords

    computable general equilibrium modeling (CGE); sustainability impact assessment (SIA); sustainable development (SD);
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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