The appropriateness of CGE modelling in analysing the problem of deforestation

Abstract

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.

Citation

Centeno Stenberg, L. and Siriwardana, M. (2005), "The appropriateness of CGE modelling in analysing the problem of deforestation", Management of Environmental Quality, Vol. 16 No. 5, pp. 407-420. https://doi.org/10.1108/14777830510614303