The document discusses the use of computable general equilibrium (CGE) models to analyze the impact of climate change policies on competitiveness and economic leakage. It provides examples of studies using CGE models to estimate the effects of policies like the Waxman-Markey bill in the US and emissions reductions in Canada. Typical findings from these models are that climate policies increase costs for energy-intensive industries, reducing their international competitiveness. The models also show non-energy industries may see reduced costs from lower input prices. However, most CGE models do not fully represent induced innovation from climate policies.