Partial equilibrium

{
  "id": "MLC-T-ENV-020266",
  "term": "Partial equilibrium",
  "field": "Environment",
  "definition": "A partial equilibrium modeling approach accounts for market changes in the regulated sector. Market responses to the regulation may include reduced industry output or higher prices as firms pass on some costs directly to consumers. The goal of a partial equilibrium approach is to measure the net change in consumer and producer surplus relative to the pre-regulatory equilibrium.",
  "subject": "General environmental",
  "references": [
    "Preparing Economic Analyses Glossary"
  ],
  "url": "https://mlchart.com/terminology/environment/partial-equilibrium/"
}