A Computable General Equilibrium Model of Environment, Economy and Population – an Overlapping Generations Approach

Ashish Tyagi, Pennsylvania State University

The Model of Environment, Economy and Population presented here is an attempt to incorporate population dynamics in the literature on climate change. It is a modeling framework for studying the intergenerational and intragenerational welfare implications of climate change mitigation policies and uses a fairly simple OLG approach, instead of an infinitely lived agent approach. It contributes to Population-Environment (P-E) modeling through endogenous demography. The general equilibrium nature of the model makes it easier to introduce perturbation in a sector and analyze its impact in rest of the economy. This approach allows modeling the dispersal of cause and agency and institutional inadequacies associated with the mitigation of climate change. In this way, the framework can be used to indicate policies which are more suited to real-world OLG economies.