Evidence-Based Analysis of Issues in Environment, Energy, and Disaster Risks with CGE Models: An Introduction to Part I

Madden, John R.

This chapter demonstrates the capabilities of CGE modeling as a tool for the numerical assessment of the likely consequences for economies of a number of severe risks. These relate to the environment, particularly climate change, energy, and disastrous events, such as a pandemic. These were issues of particular concern to Yuzuru Miyata who developed CGE models to examine them. The discussion of the Part I chapters draws out how carefully undertaken CGE analysis can provide vital numerical evidence to inform policy-makers. Particular attention is paid to two key features of the chapters: customization of general-purpose CGE models for capturing essential features of the issue under examination; and a careful examination of simulation results with explanations provided in terms of the key model mechanisms driving them.