Welcome to the GAMS users page of the Environmental Economics and Natural Resources Group, Wageningen University. This website contains (i) source codes for "Modelling the Costs of Environmental Policy"; (ii) the GAMS reader; (iii) downloadable models for the GAMS reader; (iv) the MPSGE section; and (v) additional information

Source codes for "Modelling the Costs of Environmental Policy"

Modelling the Costs of Environmental Policy: a Dynamic Applied General Equilibrium Assessment

"This important new book enhances our understanding of the dynamic interactions between economic activity, economic growth, pollution abatement and environmental policy. It addresses one main policy problem: how can the direct and indirect costs of environmental policy for multiple pollutants be properly assessed in an applied model?

Using an original methodology, the author constructs  multi-sectoral dynamic applied general equilibrium model. This new integrated model greatly improves the empirical analysis of the dynamic reactions of economic agents to pollution control, explicitly taking into account the direct and indirect effects of abatement on the economy and the environment. The author goes on to apply the model to study the costs of various environmental policies, including climate change, acidification, eutrophication, smog formation and dispersion of fine dust. He finds that if environmental policies can be implemented simultaneously and in a cost-effective manner, the economic costs of these policies can be effectively limited through a combination of economic restructuring and adopting technical abatement measures.

Modelling the Costs of Environmental Policy will prove essential and enlightening reading for scholars, students and researchers of environmental and resource economics, environmental policy and economic modelling."

New Horizons in Environmental Economics series, Edward Elgar Publishing, Cheltenham / Northampton, ISBN 1 84542 109 4, January 2005.

Download the source codes for the following models (all necessary files are included in a Winzip file):

• Comparative-static model Chapter 3
• Recursive-dynamic model Chapter 3
• Forward-looking model Chapter 3
• Base specification DEAN model

Reader "GAMS for environmental-economic modelling"

Download the (revised) reader "GAMS for environmental-economic modelling" as a:

• MS Word document
• PDF file

The reader contains:

• a guide on how to use GAMS for the course
• a short introduction in GAMS for environmental economics
• numerous learning exercises at a Beginners', Intermediate and Advanced level (including solutions for the main variables)
• specific modelling exercises on partial equilibrium, input-output, computable general equilibrium and neo-classical growth modelling, developed for the course Theories and Models in Environmental Economics

The section with modelling exercises has been substantially revised compared to the previous version (edition December 2002); moreover, exercises have been added to acquaint users with set mapping and the GDX utility. Finally, some mistakes have been corrected and some exercises have been rewritten to improve clarity.

If you are interested in the (free) Instructor's Library to this reader (with all source codes!), please contact Rob Dellink. This library is only available for lecturers.

Downloadable models for the GAMS reader

To download the models referenced to in the exercises, click the right mousebutton and choose "save target as..." / "save link as...":

• The Mapping model (exercise 3.2.20)
• The Acid model (exercise 3.3.3)
• The basic Partial equilibrium model (exercise 4.2.1)
• The basic Game-theoretic model (exercise 4.3.1)
• The basic Input-output model (exercise 4.4.1)
• The basic CGE model (exercise 4.5.1)
• The augmented CGE model (exercise 4.5.5)
• The Dinwiddy and Teal CGE model (exercise 4.5.6)
• The CGE model in MPSGE (exercise 4.5.7)
• The DICE model (exercise 4.6.2; courtesy of William Nordhaus)

CGE models in MPSGE

If you are interested in using CGE models for your thesis, think about learning MPSGE:

• First step: check out the MPSGE homepage.
• MPSGE's 'founding father' Tom Rutherford's homepage is here.
• Good reading material on MPSGE includes the Notes for a beginner in MPSGE by Sergey Paltsev.

James Markusen provides excellent examples for modelling in MPSGE.

Additional material and information

To access the section of GAMS Tips and Tricks, click here.
This section contains several useful hints on how to implement specific GAMS problems; the list is based on concrete questions by GAMS users.

A reprint of the official GAMS tutorial by Rick Rosenthal is available here.
(PDF document)

The GAMS Development Corporation can be found here.
The GAMS homepage contains a huge amount of useful information for users, including a full user guide and model library.

GAMS offers free download of a student/demo version of their software; this free version can handle almost all of the models used in the GAMS Reader.

If you encounter any problems, contact Rob Dellink.