Computable general equilibrium (CGE) model is an important policy guidance tool for pollution reduction and emission control objectives. An article, published in Energy and Climate Management, introduces the economic module, energy module, macroscopic closure, dynamic mechanism, algorithm and back-of-the-envelope of a CGE. Then, it shows how to extend the CGE to carbon tax and carbon trading market, energy rebound effect, environmental tax and disclosure, and carbon neutral strategies.
