The Appropriateness of CGE Modelling in Analysing the Problem of Deforestation
Purpose: The paper reviews recent developments in utilising computable general equilibrium (CGE) models to analyse forestry policies. The paper highlights the application of CGE modelling to deforestation and forestry issues.
Design/methodology/approach: The analysis is carried out by comparing different CGE models available in the literature, which have analysed the economic consequences of deforestation and changes in forestry policies.
Findings: The use of CGE models in analysing forestry issues is still in its early stages. There is room for innovation and improvement in the various models used.
Practical implications: The paper emphasises the relevance of general equilibrium analysis in the evaluation of both micro- and macro-economic policies on forestry. It encourages researchers to use general equilibrium analysis in their study of environmental problems.
Originality/value: The paper highlights the contribution and possible benefits of utilising CGE models in analysing environmental problems such as deforestation, especially in the context of environment-economics trade-off.
Stenberg, L. C., & Siriwardana, M. (2005). The appropriateness of CGE modelling in analysing the problem of deforestation. Management of Environmental Quality: An International Journal, 16(5), 407-420. doi: 10.1108/14777830510614303