Simulating the economic impact of resources depletion using a computable general equilibrium model for Romania

Resources depletion is a pressing problem affecting the today's economies with multiple implications on the economic activities and main economic indicators. In this context, the paper builds a computable general equilibrium model capturing the mechanisms through which the availability of energy resources affect the economy. The analysis focuses on fossil energy resources depletion. The model is an open economy general equilibrium model with bilateral trade and a nested CES production function to capture the impacts of depletion. The effects on the main relevant economic indicators like: GDP, sectorial production, household consumption, welfare are analyzed. (C) 2015 Published by Elsevier B.V.