CGEs can and have been used to identify the environmental impacts of various policy and other disturbances. This approach is essential if relative price changes are a key element of any disturbance, as is the case, for example if a carbon tax is imposed (e.g. [9]) or energy efficiency is improved. In the latter case CGEs can be used to analyse the ‘rebound’ and ‘backfire’ effects associated with energy efficiency improvements (e.g. [7,60,45]). The approach may similarly be applied to explore the economic and environmental impact of significant penetration of DG.