||This bachelor thesis deals with the functions of CGE models and their application for analyzing various economic impacts of environmental issues. In this thesis we first discuss the particular types of economical models used in this area. Subsequently, the CGE models are defined, their history is outlined and their main benefits and drawbacks are presented. We use a simple CGE model to demonstrate how CGE models function. Afterwards we illustrate the main essential enlargements of the basic model in order to analyze the economic impacts of environmental issues. The last chapter communicates the chosen results of CGE models.