PT - JOURNAL ARTICLE AU - Smith, V. Kerry AU - Zhao, Min Qiang TI - Economy-Wide Modeling, Environmental Macroeconomics, and Benefit-Cost Analysis AID - 10.3368/le.96.3.305 DP - 2020 Aug 01 TA - Land Economics PG - 305--332 VI - 96 IP - 3 4099 - http://le.uwpress.org/content/96/3/305.short 4100 - http://le.uwpress.org/content/96/3/305.full SO - Land Econ2020 Aug 01; 96 AB - This paper develops a new method for evaluating benefit estimates prepared for major environmental rules and addresses three criticisms of existing practices: (1) using benefit estimates from the literature without adjusting for the conceptual differences underlying their meaning, (2) ignoring feedback effects of policy, and (3) failing to recognize the potential for economy-wide effects of large policies. Our approach adapts a general equilibrium framework characteristic of macroeconomic models and focuses on the effects of introducing nonmarket environmental services into the aggregate or “stand-in” preference function. Two recent policies illustrate how it can be used to assess economy-wide effects. (JEL D61, H41)