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Computable General Equilibrium Models for Evaluating Domestic Greenhouse Policies in Australia

Consultancy report

This report by Jack Pezzey and Ross Lambie was released on 4 April 2001.

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Cover, Copyright, Contents, Preface, About the authors, Acknowledgments, Abbreviations, Key Points

1   Introduction
1.1   Computable general equilibrium (CGE) modelling of GHG policy options
1.2   Objectives of this report
1.3   Describing and assessing model characteristics
1.4   Previous studies
1.5   Outline of this report

2   Overview of the models
2.1   Common features of CGE models
2.2   MMRF-Green
2.3   MM600
2.4   GTEM
2.5   G-Cubed

3   Detailed features of the models
3.1   MMRF-Green
3.2   MM600+
3.3   GTEM
3.4   G-Cubed

4   Technical comparison of the models
4.1   Levels of disaggregation
4.2   Specification of household demand
4.3   Specification of production technology
4.4   Treatment of government taxes and transfers
4.5   Model closure and dynamics
4.6   Transparency

5   Implications for GHG control policy
5.1   What types of GHG control policies can be included?
5.2   What are the distributional effects?
5.3   What overall reduction of GHG emissions is desirable?
5.4   Sample results on marginal abatement costs: the importance of assumptions
5.5   Model validation and sensitivity analysis

6   Conclusions
6.1   What can be concluded about the models
6.2   Recommendations for further work

A   Mathematical production and utility functions used in CGE modelling

B   Summary table of CGE model features

C   Commodities and greenhouse gases covered by the models