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Purpose -The paper reviews recent developments in utilising computable general equilibrium (CGE) models to analyse forestry policies. The paper highlights the application of CGE modelling to deforestation and forestry issues. Design/methodology/approach -The analysis is carried out by comparing different CGE models available in the literature, which have analysed the economic consequences of deforestation and changes in forestry policies. Findings -The use of CGE models in analysing forestry issues is still in its early stages. There is room for innovation and improvement in the various models used. Practical implications -The paper emphasises the relevance of general equilibrium analysis in the evaluation of both micro-and macro-economic policies on forestry. It encourages researchers to use general equilibrium analysis in their study of environmental problems. Originality/value -The paper highlights the contribution and possible benefits of utilising CGE models in analysing environmental problems such as deforestation, especially in the context of environment-economics trade-off.

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