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Measuring Sustainable Development: The Use of Computable General Equilibrium Models

  • Böhringer, Christoph
  • Löschel, Andreas

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.

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File URL: http://econstor.eu/bitstream/10419/24066/1/dp0414.pdf
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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 04-14.

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Date of creation: 2004
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Handle: RePEc:zbw:zewdip:2347
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  1. Vennemo, Haakon, 1997. "A dynamic applied general equilibrium model with environmental feedbacks," Economic Modelling, Elsevier, vol. 14(1), pages 99-154, January.
  2. 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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