General Equilibrium Model for Economy - Energy - Environment (GEM-E3)
The GEM-E3 model simultaneously computes the equilibrium prices of goods, services, labor and capital. The economic agents optimize their objective functions and determine separately supply and demand. Market prices guarantee a global equilibrium endogenously. The structural features of the energy/environment system and the policy-oriented instruments (e.g. taxation) have a considerable level of detail. The geographical regions are linked through bilateral trade.
When to Use This Tool
This tool is most useful for development impacts assessments focused on:
Learn more about the topics for assessing the impacts of low-emission development strategies (LEDS).
The equilibrium prices of goods, services, labor and capital that simultaneously clear all markets under the Walras law, and the optimum balance for energy demand/supply and emission/abatement. The model setup includes the energy-related and non-energy related emissions of carbon dioxide (CO2), other GHG such as methane (CH4), nitrous oxide (N20) sulfur hexafluoride (SF6), hydrofluorocarbon (HFC), and perfluorocarbon (PFC).
How to Use This Tool
Documentation and manual provided; recommended training on Computable General Equilibrium (CGE) and economic modeling approaches.
Level of Expertise
Energy and economic data. There are two versions of GEM-E3: GEM-E3 Europe and GEM-E3 World. GEM-E3 World is based on the Global Trade Analysis Project (GTAP) 7 database (base year 2004). GEM-E3 Europe is based on EUROSTAT data.
Examples of how General Equilibrium Model for Economy - Energy - Environment (GEM-E3) has helped people assessing the impacts of low-emission development strategies in countries and regions:
Case studies of European Union are available at: http://ipts.jrc.ec.europa.eu/activities/energy-and-transport/gem-e3/publications.cfm.