Computable general equilibrium (or CGE) models are multi-sector numerical models based on concepts usually associated with Walrasian general equilibrium theory. They are designed for quantitative analyses of resource allocation problem and related policy issues in a national, multi-national or global economy. Major fields of application include international trade regimes, major tax reforms, and the economic impact of technological change. In addition CGE models have been fruitfully used for analyses of environmental and natural resource problems and policies. The common feature of the CGE model applications is that the impact of expected changes in exogenous conditions in one sector of the economy has repercussions in other sectors of the economy, including changes in relative prices.

This teaching workshop provides an introduction to computable general equilibrium (CGE) models for the analysis of environmental and resource policies. It has grown out of the recognition of the growing importance of economywide modelling techniques in research, academic and policy circles in Africa. The course will develop step-by-step environmental CGE models that can be used in the scientific and policy debate for the economic assessment of such policy initiatives. The course will have many "hands-on" exercises in CGE modelling. By the end of the course, each participant should be able to design, implement, solve and interpret the results of small static CGE models. Participants will also present a brief project using the modelling tools learnt during the course.

The workshop is intended for people in the scientific and business community (universities, research centers, consulting companies) as well as people in administration (ministries) that are drawn from eastern, central and southern Africa.