EPA's Office of Atmospheric Programs (OAP) requested the SAB provide advice on a computable general equilibrium (CGE) model known as the Second Generation Model (SGM). This regionally disaggregated model of the global economy is a computer program that uses input-output relationships and simultaneous equations to simulate activities in multiple markets (e.g., labor markets, energy fuels markets, and final goods markets) in the economy. EPA's OAP requested that the SAB provide comments on the appropriateness and usefulness of the SGM model for estimating the economic effects of climate policies.
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