Nexus SAMS for CGE modeling

In the context of economic and environmental analysis, Social Accounting Matrices (SAMs) are comprehensive, economy-wide databases that capture the transactions and transfers between different economic agents. They are used as a basis for CGE models, which are widely employed to analyze the economic impacts of various policies and changes.

The term “Nexus” in this context typically refers to the interlinkages between different sectors or aspects, such as the water-energy-food nexus, highlighting the interconnected nature of these resources. In CGE modeling, incorporating Nexus SAMS means integrating these interlinkages into the economic analysis, allowing for a more holistic understanding of how changes in one sector can impact others. This approach is particularly relevant in analyzing environmental policies, sustainability initiatives, and resource management strategies.

By integrating Nexus SAMS into CGE models, analysts can better assess the trade-offs and synergies among different policy objectives, such as economic growth, environmental sustainability, and resource use efficiency. This approach is increasingly important in the context of sustainable development and climate change mitigation strategies.