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Purpose – Economic impact analysis in tourism has recently undergone a profound change in approach. In contrast to earlier emphasis on input-output (I-O) models, computable general equilibrium (CGE) models, are being used worldwide to estimate the resulting net macroeconomic and industry effects and for tourism policy analysis. The purpose of this paper is to provide an overview of the role that computable general equilibrium modelling is playing and can play in estimating the economic impacts of tourism shocks and in tourism policy formulation and implementation by destination managers. Design – The study discusses the nature of CGE modelling to project the economic impacts of tourism demand shocks, comparing its advantages over standard I-O analysis. It then identifies several studies where CGE analysis provides insights to tourism researchers that could not be revealed using the standard I-O technique. The importance of CGE analysis for tourism policy analysis is highlighted. Methodology and Approach – The study reviews important contributions to CGE modelling in tourism contexts, including many of the authors publications Findings – The paper discusses applications of CGE modelling to tourism, identifying several areas where tourism analysis and policy have been suitably informed as a result of such modelling. Particular insights that CGE modelling has brought to tourism planning, forecasting and policy analysis are identified. Originality of the research – Due to its technical nature, tourism researchers are generally unaware of the advantages of CGE modelling compared to standard economic impact analysis using I-O models. This study identifies and discuss the key reasons why CGE modelling should be accorded greater attention by governments and their agencies, consultants and researchers associated with tourism analysis and policy.

In the transport planning process, decision makers use cost benefit analyses (CBAs) to quantify the impacts of proposals. However, CBAs assume that markets operate perfectly, resulting in uncaptured impacts from externalities, taxes and other imperfections. Another shortcoming is that it can be difficult to determine the distribution of impacts, which is often a serious concern to governments and the community. Computable general equilibrium (CGE) models simulate entire economies by representing markets from microeconomic behavioural functions of households, firms and others. The magnitude and distribution of both direct and wider economic impacts can be assessed within CGE models through welfare, GDP, prices and other economic measures. However, few CGE models have the necessary features for urban transport planning and appraisal, such as spatial detail at an urban scale, endogenous trip generation and the representation of transport networks. Furthermore, scant literature exists on how to develop CGE models for transport applications and there are few reviews of CGE models of transport. This thesis has three aims: (1) to review CGE models of transport and their applicability to appraisal, (2) to review the concepts, theory and assumptions of CGE modelling in relation to transport, and (3) to formulate and apply an integrated CGE and transport model for Sydney. The first main chapter explores urban, regional, congestion, externality and other non-spatial CGE models for transport, and discusses the theoretical and practical issues of CGE modelling for appraisal. The next three main chapters synthesise the foundations of CGE modelling as an exposition for transport planners and engineers to develop their own models. This includes mathematical modelling and optimisation problems, microeconomic models of agent and market behaviour and the fundamentals of CGE modelling. The final three chapters formulate, calibrate and demonstrate CGE models of transport. The first formulates a full integrated CGE and transport ...

This thesis is dedicated to the evaluation of environmental policies in the context of climate change. Its objectives are twofold. Its first part is devoted to the development of potent instruments for quantitative impact analysis of environmental policy. In this context, the main contributions include the development of a new computable general equilibrium (CGE) model which makes use of the new comprehensive and coherent World Input-Output Dataset (WIOD) and which features a detailed representation of bilateral and bisectoral trade flows. Moreover it features an investigation of input substitutability to provide modellers with adequate estimates for key elasticities as well as a discussion and amelioration of the standard base year calibration procedure of most CGE models. Building on these tools, the second part applies the improved modelling framework and studies the economic implications of environmental policy. This includes an analysis of so called rebound effects, which are triggered by energy efficiency improvements and reduce their net benefit, an investigation of how firms restructure their production processes in the presence of carbon pricing mechanisms, and an analysis of a regional maritime emission trading scheme as one of the possible options to reduce emissions of international shipping in the EU context.