The ENV-Linkages Computable General Equilibrium (CGE) model is an economic model that describes how economic activities are inter-linked across several macroeconomic sectors and regions.

It links economic activity to environmental pressure, specifically to emissions of greenhouse gases (GHGs). The links between economic activities and emissions are projected for several decades into the future, and thus shed light on the impacts of environmental policies for the medium- and long-term future.

The modelling work based on ENV-Linkages aims to assist governments in identifying least-cost policies or policy mixes on a range of environmental issues, including mitigation of climate change, phasing out fossil fuel subsidies and other green growth policies, such as environmental tax reform.

Key questions addressed:

• What are the economic impacts of GHG mitigation policies?

Sample data inputs:

• Demographic data (population)
• Economic data (labor productivity, price and income elasticities)
• Resources (forestry, fishery, fossil fuel, mineral)
• Technology

Sample quantitative outputs:

• GDP
• Population aging
• Education levels and human capital
• Physical capital investments
• International trade flows
• Productivity improvements

Access the ENV-Linkages modelling tool.

Resources:

An overview of the OECD ENV-Linkages model.

Further resources can be found here.