Analyzing the Implications of a Change in Mining Regulations on a Small City Economy

There is wide agreement that sustainability has multiple dimensions, but substantially less agreement on the appropriate balance among those dimensions. This occurs because peoples’ vision of a sustainable future, their goals for sustainable development, and their objectives for resource management are reflections of their values, culture, and life experiences. Even assuming agreement about the objectives of sustainable resource management can be reached; there is still a need for policy and decision makers to choose from among alternative courses of action, each of which has its own set of impacts and outcomes. One of several tools used to compare the consequences of alternative actions is the Computable General Equilibrium (CGE) model. This paper uses CGE modeling to demonstrate how policy decisions do not take place in a vacuum and how policy-makers must be aware that there are trade-offs involved in any decision.