Governments Can Curb Greenhouse Gas Emissions with Efficient Policies
CGE modeling studies how environmental policies and resource management impact economies. These models show how resources are allocated and income is distributed in market systems. They are now commonly used to analyze environmental issues by simulating different scenarios. These models can be static (unchanging) or dynamic (changing over time) and can focus on single countries, multiple countries, or the entire globe. Most models concentrate on emissions like greenhouse gases, and are useful for estimating the costs of meeting environmental agreements. The models help economists and policymakers understand how environmental policies influence real-world economies, bridging theory and practice.