IAM & E3
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Name of the Model
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Name of the Organization
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Description of the Model
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Particular Relevance
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Coverage
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AIM
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National Institute of Environmental Studies, Japan
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The AIM (Asia Pacific Integrated Model) is an integrated assessment model made up of three modules:
- the greenhouse gas emission model (AIM/emission);
- the global climate change model (AIM/climate);
- the climate change impact model (AIM/impact).
The third of these makes the model relevant to assessing the response measures. However, the model
also contains a very detailed technology selection module to evaluate the effect of introducing
advanced technologies in the Asia-Pacific region.
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The AIM model is particularly useful when analysing the development and diffusion of new
'greener' technologies in the Asia-Pacific region.
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Asia-Pacific
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ASF
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US Environmental Protection Agency
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ASF is an integrated assessment model, which provides a framework for developing scenarios of future
emissions based on consistent demographic, economic, and technological assumptions. Its strength is in
its links between the use of biofuels, land use, technological development and GHG policy. It is
therefore an appropriate tool for evaluating the land-use impacts of response measures.
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The ASF model is used for analysing the development of clean technology in areas that are not related
to energy generation, such as land use. These areas are often less well covered by other models, making
it an important tool.
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World, split into nine regions
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E3ME
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Cambridge Econometrics
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The econometric E3ME model has been built as a framework for assessing energy-environment-economy
issues and policies. Its close links between energy demand and economic indicators make it
well-suited to assessing the social and economic impacts of response measures. In particular,
additional taxes or the removal of subsidies can be assessed with the model. E3ME can also be used to
examine the impacts of efficiency measures, including rebound effects.
- In the past the model has mainly been used for:
- general macro and sectoral economic analysis;
- more focused analysis of policies relating to greenhouse gas mitigation;
- assessing incentives for industrial energy efficiency; analysing sustainable household
consumption – for example to assess impacts of raw material taxation on household consumption
patterns and other economic variables.
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E3ME is relevant in assessing the socio-economic impacts of the climate change mitigation policies, for
example the effect these policies have on specific industries or on income distribution. E3ME can be
particularly useful in analysing changes to policies regarding taxation, subsidies and efficiency
improvements of activities relating to fossil fuels.
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EU27, Norway and Switzerland
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E3MG
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Cambridge Centre for Climate Change Mitigation Research (4CMR)
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E3MG is a sectoral econometric model that has been developed with the intention of analysing
long-term energy and environment interactions within the global economy and assessing short and
long-term impacts of climate-change policy.
It is very similar to E3ME in structure and closely links economic outcomes with energy policy. It
has a particular focus on taxes and subsidies, making it highly relevant to analysis of these
response measures. Its global nature also makes it a useful tool for assessing the deployment of new
technologies in developing countries.
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E3MG is relevant in assessing the socio-economic impact of climate change mitigation policies on a
global level. It is particularly useful in analysing the effects of changes in tax and subsidy
policies, as well as analysing technological diffusion in developing countries.
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World divided in 20 regions
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ENTICE-BR
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Department of Public Administration, Center for Environmental Policy Administration, The Maxwell
School, Syracuse University
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ENTICE-BR is a dynamic growth model of the global economy that includes links between economic
activity, carbon emissions, and the climate. The model includes endogenous links between climate
policy and energy innovation, making it an appropriate tool for modelling both technological options
and economic impacts.
ENTICE-BR is mainly used for: 1) analysing the impacts of R&D spending in the energy sector (in
particular climate-friendly); and 2) studying the effects of various climate stabilization
policies.
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ENTICE-BR is highly relevant to assessing methods for improving energy efficiency and the development
and diffusion of new technologies. The model can also be used for assessing the economic effects of
such policy.
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World
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FAIR
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Netherlands Environmental Assessment Agency
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The FAIR model is an interactive, decision-support tool to analyse the environmental implications and
economic costs of climate mitigation regimes.
The model links long-term climate targets and global reduction objectives with regional emissions
allowances and abatement costs, so is particularly useful for looking at some of the more detailed
Kyoto mechanisms.
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FAIR is relevant in assessing the socio-economic impact of climate change mitigation policies. In
particular, the model is useful in assessing the costs of such policies.
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26 world regions (FAIR region model), 27 EU Member States (FAIR EU model) and 224 UN countries (FAIR
world model)
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FUND
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Sustainability and Global Change, University of Hamburg
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FUND is an integrated assessment model originally set-up to study the role of international capital
transfers in climate policy. The model is now often used to perform cost-benefit and
cost-effectiveness analyses of greenhouse gas emission reduction policies.
It is therefore most suitable for analysing the social and economic impacts of the various response
measures, with a particular focus on equity, both between countries and between socio-economic
groups.
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FUND is relevant in analysing the socio-economic impacts of climate change mitigation policies,
with particular focus on estimating the 'costs' of these policies. This makes the model
particularly useful when looking at international equity issues.
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World
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G-CUBED
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The Maxwell School, Syracuse University
Peter J Wilcoxen
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The G-Cubed is a multi-country, multi-sector, general equilibrium model that can be used to study a
variety of policies in the areas of environmental regulation, tax reform, monetary and fiscal policy
and international trade. It is different from most other models in discriminating between financial and
physical capital.
The model is therefore a suitable tool for looking at the economic impacts of a range of response
measures, including tax systems, technological development and economic diversification. It has also
been applied to financial risk management in the UK.
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The G-Cubed model is relevant in analysing the socio-economic impacts of climate change mitigation
policies, as it has a wide range of both fiscal and monetary polices that can be studied. These make it
a suitable tool for carrying out financial risk management analysis and the model can also be used to
analyse trade flows, sectoral (diversification) impacts and the effects of technological progress
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World, split into 8 regions
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GEM-CCGT
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ZEW GmbH
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GEM-CCGT is a general equilibrium model designed for analysing the effects of multilateral agreements
on climate change and trade. It is similar in structure to the PACE model and can be used in the same
way to assess the impacts of response measures. Its main outputs in such analysis would be changes in
economic activity and example policies are changes in rates of taxation or energy-efficiency
measures.
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GEM-CCGT is relevant in analysing the trade impacts of climate change mitigation policies, in
particular technology-related policies and the effects of environmental taxation.
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World, split into 45 regions
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GEM-E3
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Centre for Economic Studies, KULeuven
Institute of Communication and Computer Systems of National Technical University of Athens
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The GEM-E3 model was designed to provide details on the macro-economy and its interactions with the
environment and the energy system. It is a general equilibrium model, meaning it computes the
equilibrium prices of goods, services, labour, and capital that simultaneously clear all markets.
The model is mainly used for:
- simulating the effects of market-based instruments (such as taxes) for energy-related
environmental policy on key economic and environmental indicators;
- evaluating European Commission programmes aimed at promoting sustainable economic growth; and
- public finance, stabilisation policies and their implications on trade, growth and the behaviour
of economic agents.
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GEM-E3 is particularly relevant in analysing the socio-economic and environmental impacts of changes in
energy-related tax and subsidy policies.
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24 European countries in GEM-E3 Europe, 20 World regions in GEM-E3 World
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GEMINI-E3
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REME
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GEMINI-E3 has been specifically designed to assess world climate change policies, in particular the
effects of the Kyoto Protocol, both at the microeconomic and the macroeconomic levels. It is a
multi-country, multi-sector, dynamic model incorporating a highly detailed representation of indirect
taxation.
The current version of the model is capable of assessing intra-European and domestic policies such as
the directive on quotas, project of directive "energy-climate" and the determination of
carbon value. A new version, GEMINI-EMU, has been developed specifically aimed at assessing
intra-European macroeconomic policies but also relevant for climate change scenarios appraisal.
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GEMINI-E3 is relevant in analysing the socio-economic impacts of climate change mitigation policies
(focusing on the Kyoto Protocol), including taxation and emissions trading.
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All Annex B countries and 11 non-Annex B countries
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GINFORS
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GWS
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The Global INterindustry FORecasting System (GINFORS) is an economy-energy-environment model with
global coverage and a detailed sectoral disaggregation. Through its integrated treatment of the
environment, energy demand and the economy it is well-suited to assessing the impacts of environmental
policy. In particular, it has been used to look at the impacts of changes in taxation policy and
changes in sectoral efficiencies.
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The GINFORS model is relevant in analysing the trade and long-term energy demand and supply impacts of
climate change mitigation policies. The model has specifically been used to assess the impacts of
environmental taxation.
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all EU27 countries, all OECD countries and their major trade partners
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GTEM
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ABARE
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GTEM is a dynamic multi-region, multi-sector general equilibrium model of the world economy. The
model can be used to analyse all key aspects of the Kyoto Protocol, including carbon sinks, the clean
development mechanism, and international emissions trading, including the banking of emissions quota
and market power. It can therefore be used for assessing the economic impacts of tax and emission
trading schemes and diversification among economic sectors.
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The GTEM model is relevant in analysing the international socio-economic impacts of climate change
mitigation policies (focusing on the Kyoto Protocol), including taxes and emission trading.
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World, split into 66 regions
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ICLIPS
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Potsdam Institute of Climate Impact Research
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ICLIPS seeks to provide Integrated Assessment of Climate Protection Strategies to support the
decision-making community. The model assesses the social and economic consequences of climate-change
policies. It consists of three modules looking at climate effects, the impacts of these effects and
the socio-economic outcomes.
The basis for the model is the two-way linkages between society and the climate, making it an
appropriate tool for assessing the economic, social and environmental impacts of response measures.
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ICLIPS is particularly useful in investigating methods of economic diversification in various world
regions, as well as the assessment of the socio-economic impacts of climate change mitigation policies.
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World
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IGSM
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MIT
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The IGSM model is relevant in analysing the socio-economic impacts of climate change mitigation
policies, in particular taxation policy and policies related to technology development. The model can
also be particularly useful for analysing international trade flows.
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The IGSM model is relevant in analysing the socio-economic impacts of climate change mitigation
policies, in particular taxation policy and policies related to technology development. The model can
also be particularly useful for analysing international trade flows.
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World
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IMACLIM
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CIRED
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IMACLIM-S is a static general equilibrium model designed to assess the macroeconomic impacts of a
price- or quantity-based carbon policy. It is therefore particularly suitable for modelling the
economic impacts of changes to tax regimes and emissions trading. However, using abatement costs the
model can also be used for assessing the impacts of regulatory changes or emission standards.
IMACLIM-R is a dynamic version of the model that is more focused on technological change. It is
therefore also appropriate for looking at long-term technological solutions to climate change.
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The IMACLIM model has been used for analysing the socio-economic impacts of climate change mitigation
policies, for example changes to taxes and subsidies. The model can also be useful in analysing
international trade flows.
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World, 14 region split for the static version and 12 region split for the dynamic one.
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IMAGE
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Netherlands Environmental Assessment Agency
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IMAGE is a multi-disciplinary, integrated system of models designed to simulate the dynamics of the
global society-biosphere-atmosphere system. Its particular strength is that it can assess the social
and economic impacts of policies aimed at reducing emissions from land-use change.
The model can forecast up to 2100 and has a spatial scale grid of 0.5 x 0.5 degrees
latitude-longitude for climate, land-use and land-cover processes, and region-level split for
socio-economic indicators.
The model is mainly used to:
- investigate linkages and feedbacks in the global society-biosphere-atmosphere system;
- assess consequences of global policies;
- analyse relative effectiveness of various policy options addressing global change.
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The IMAGE model is relevant in assessing the socio-economic impacts of the climate change mitigation
policies, in particular the impacts on the agricultural economy, land use and trade, as well as energy
demand and supply.
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World, divided into 26 regions
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MDM-E3
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Cambridge Econometrics
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MDM-E3 is the UK's most detailed econometric energy-environment-economy (E3) model, designed to
analyse and forecast changes in economic structure, energy demand and resulting environmental
emissions. It is very similar to E3ME in structure, and its close links between energy demand and
economic indicators make it well-suited to assessing the economic impacts of response measures.
In particular, additional taxes or the removal of subsidies can be assessed with the model in the UK.
MDM-E3 can also be used to examine the impacts of efficiency measures, including rebound effects.
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MDM-E3 is relevant in assessing the socio-economic impacts of the climate change mitigation policies in
the UK. MDM-E3 can be particularly useful in analysing changes to policies regarding taxation,
subsidies and efficiency improvements of activities relating to fossil fuels
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World, divided into 26 regions
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MERGE
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EPRI
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MERGE was designed to estimate the regional and global economic impacts of greenhouse gas reductions.
The model is sufficiently to flexible to explore alternative views on a wide range of issues, such
as: costs of abatement, damages from climate change, valuation and discounting. MERGE is made up of
four submodels:
- domestic and international economy;
- energy-related emissions of greenhouse gases;
- non-energy emissions of GHG's;
- global climate change – market and non-market damages.
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The MERGE model is relevant to analysing the socio-economic impacts of climate change mitigation
policies, for example through taxation measures.
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World, split into 9 regions
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MERLIN
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Institute of Energy Economics and the Rational Use of Energy (IER)
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MERLIN is a cost-benefit-analysis computer-based model system that can be used to determine the
bundle of air pollution control measures that is capable of achieving compliance with air quality
limit and target values (for emission, concentrations and deposition) for specific pollutants at
least-costs.
Furthermore, the model can be used to calculate benefits, i.e. avoided damage costs by implementing
air pollution control measures, first in a physical way, and in a second step - as far as possible -
in monetary terms. In addition, macroeconomic effects and distributional impacts of pollution control
strategies can be determined.
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The model is relevant in assessing the socio-economic impacts of the climate change mitigation
policies. In particular, this model can be used to estimate the economic cost and benefits of such
policies.
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Europe
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GCAM
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Joint Global Change Research Institute (PNNL)
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GCAM is an integrated assessment model that focuses on the world's energy and agriculture systems
and includes numerous energy supply technologies.
The model is mainly used for:
- estimating the impacts of technologies and policies related to GHG emissions in a national and
global context;
- evaluating different technologies, including carbon sequestration;
- land-use/ agriculture modelling;
- basic climate change modelling.
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GCAM is relevant to analysing the development of new environmentally-friendly technologies, as well as
evaluating the performance of existing conventional ones. The model can also be useful when looking at
the diffusion of technology across global regions.
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World, split in 14 regions
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MS-MRT
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CRA International
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The Multi-Sector Multi-Region Trade (MS-MRT) model is a computable general equilibrium model designed
to address questions about the economic and trade impacts of climate change policies. It's sectoral
disaggregation makes it a suitable tool for considering diversification away from fuel-consuming and
producing sectors.
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The MS-MRT model is relevant in analysing the socio-economic impacts of climate change mitigation
policies, with a focus on sectoral and trade-related impacts. MS-MRT could also be useful for analysing
economic diversification.
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World, split into 7 regions
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NEMESIS
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ERASME
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NEMESIS is a multi-country macro-sectoral econometric model which can be used for assessment of
structural policies, mainly environmental and R&D policies. It closely links energy and
environmental policy to economic outcomes, making it a suitable tool for analysis of the response
measures. In particular it can be used to model the impacts of additional taxes on emissions or
energy use.
The model has mainly been used for:
- assessment of short and medium term consequences of energy and environmental (air pollution)
policies, R&D, technology-related and economic policies on EU economies and on the state of the
environment;
- forecasting baseline scenarios for 30 years' time, including sustainable development
scenarios.
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NEMESIS is relevant in analysing the socio-economic impacts of climate change mitigation policies, and
in particular technology related policies and taxation schemes.
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EU27, USA, Japan
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OECD-GREEN
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OECD
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GREEN was developed in order to assess the economic impacts of imposing limits on carbon emissions.
GREEN is a global computable general equilibrium model with a special focus on energy production and
consumption. The GREEN model has a wide range of policy instruments, as well as many other exogenous
factors. These include energy-efficiency improvements and the price of new forms of renewable energy.
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The model is relevant in analysing the impacts of climate change mitigation policies (especially
through trading schemes) on energy production and consumption and on energy efficiency and new
technologies.
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World, divided into 12 regions
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PACE
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ZEW GmbH
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PACE is a flexible system of general equilibrium models, integrating the economy, energy, and
environment dimensions. The model has a standard multi-sector, multi-region core made up of global
trade and energy use, which was designated to assess major policy initiatives in a world that is
increasingly integrated through trade. Its main strength is its ability to assess the long-term
economic and social impacts of environmental policy, particularly policy relating to shifts in
taxation or subsidies and energy efficiency.
The model is mainly used for:
- economic analysis of energy and environmental policy initiatives;
- problem-specific investigation of trade, tax, and labour market policies without a focus on
energy or environmental markets.
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The PACE model is used for analysing the socio-economic impacts of climate change mitigation policies,
especially those that focus on technology. The model can also be used for analysis of energy taxes and
subsidies.
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12 World regions
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PANTA-RHEI
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GWS
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PANTA RHEI provides a detailed treatment of Germany's economy, linked to energy use and
atmospheric emissions. The model is suitable for assessing changes in taxation policy and sectoral
efficiency and has a detailed sectoral disaggregation.
The model is mainly used for:
- analysis of long-term changes in energy demand and supply and in an economy;
- estimating the impact of different climate policy instruments
- forecast of energy emissions .
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PANTA-RHEI is relevant in analysing the economic and trade impacts of mitigation policy in Germany. The
model's detail makes it suitable for looking at energy-efficiency policy and tax/subsidy schemes.
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Germany
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Second Generation Model
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Joint Global Change Research Institute (PNNL)
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SGM is a computable general equilibrium model with emphasis on demographics, resources, agriculture,
energy supply and transformation, energy intense industries, household consumption, and government
expenditure. The model is used to project energy consumption and greenhouse gas emissions but its main
relevance is its use in evaluating the economic impacts of climate change policies and the use of
technologies for emissions mitigation.
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The SGM model is relevant in assessing the socio-economic impacts of climate change mitigation
policies, with a specific focus on resources, agriculture and energy-intensive industries.
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World, split in 13 regions
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TIAM
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Institute of Energy Economics and the Rational Use of Energy (IER)
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TIAM (TIMES Integrated Assessment Model) comprises several thousand technologies in all sectors of
the energy system. It is therefore most relevant to assessing the possibilities for technological
solutions to reducing emissions of greenhouse gas emissions. This includes policy aimed at
stimulating the development of new technologies and creating the conditions for the adoption of these
technologies.
The model is characterized by several technical and economic parameters and by emission coefficients
for the three main GHG’s: CO2, CH4, and N2O.
The following mitigation options are available in the model:
- energy and technology substitution;
- demand reduction;
- specific CH4 and N2O options;
- biological absorption of CO2;
- capture (electricity and hydrogen) and sequestration of CO2 (CCS).
Outputs from the model include the rate of adoption of new technologies and subsequent emission
levels.
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The model is relevant to investigating the development of new 'greener' energy technologies and
looking at the conditions for the adoption of these technologies.
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World, split into 15 regions
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