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Name and Version:  GEM-E3

Model developer and main users: NTUA/E3M Lab (lead partner)

Model objective:
The model puts emphasis on:
i) The analysis of market instruments for energy-related environmental policy, such as taxes, subsidies, regulations, emission permits etc., at a degree of detail that is sufficient for national, sectoral and World-wide policy evaluation.
ii)The assessment of distributional consequences of programmes and policies, including social equity, employment and cohesion for less developed regions.

Model concept: 
General equilibrium 

Solution Method:
The model is formulated as a simultaneous system of equations with an equal number of variables. The system is solved for each year following a time-forward path. The model uses the GAMS software and is written as a mixed non-linear complementarity problem solved by using the PATH algorithm using the standard solver options

Base year: 2004

Time Horizon, and time steps:
2050, Five year time steps

Model anticipation: 

Coverage and regions:
Global. No. of regions. = 38
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Germany, Denmark, Spain, Estonia, Finland, France, United Kingdom, Greece, Hungary, Ireland, Italy, Lithuania, Luxembourg, Latvia, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Sweden, Romania, USA, Japan, Canada, Brazil, China, India, Oceania, Russian federation, Rest of Annex I, Rest of the World

Policy implementation:
Taxes, Permits trading, Subsidies 


Economic sectors (represented separately in terms of value added): 
X Agriculture 
X Industry 
X  Energy 
X Transport 
X Services 
X Other
If other, please list or give number. If no separate sectors please give brief explanation of economy:
GEM-E3 represents 29 sectors:
Agriculture,Coal,Crude Oil,Oil,Gas,Electricity supply,Ferrous and non ferrous metals,Chemical Products,Other energy intensive,Electric Goods,Transport equipment,Other Equipment Goods,Consumer Goods Industries,Construction,Transport (Air),Transport (Land),Transport (Water),Market Services,Non Market Services,Coal fired,Oil fired,Gas fired,Nuclear,Biomass,Hydro electric,Wind,PV,CCS coal,CCS Gas

Exogenous Model Drivers: 
X Total Factor Productivity 
X Labour Productivity 
X Capital Technical progress 
X  Energy Technical progress 
X  Materials Technical progress 
X Learning-by-doing 
X Active population growth

X  GDP per capita
☐ Income distribution in a region
☐ Urbanisation rate
☐ Education level  
X Labour participation rate
☐ Other
If other, please briefly describe:

 Behaviour and behavioural change:  
GEM-E3 contains a detailed representation of economic agents behavior. Households maximize their inter-temporal utility under an inter-temporal budget constraint. Their first decision regards allocation of income between present and future consumption of goods. At a second stage they allocate total consumption expenditure between the different consumption categories (non-durable and services from durable goods). Firms are modelled to maximize profits, constrained by physical capital stock and available technology. Production functions exhibit a nested separability scheme, involving capital, skilled and unskilled labour, energy and materials and are based on a CES neo-classical type of production function.

Cost measures:  
X GDP loss 
X Welfare loss 
X Consumption loss

X Coal  
X Oil 
X Gas 
☐ Uranium 
X Electricity
☐ Bioenergy crops X Food crops
☐ Capital
X Emissions permits 
X Non-energy goods
☐ Other

If other, please briefly describe:

Resource Use: 
X  Coal 
X Oil 
X Gas 
X Biomass 

Electricity technologies:  
X Coal 
X Gas
X Oil  
X Nuclear
X Biomass 
X Wind 
X Solar
☐ Others

If others, please give brief details or number:

Heat and other conversion technologies:
☐ Heat pumps
☐ Hydrogen
☐ Fuel to gas
☐ Fuel to liquid
☐ Others

If others, or if necessary,  please give brief details or number of each technology:

Grid and infrastructure:  
X Electricity
☐ Gas
☐ Heat
☐ CO2
☐ H2
☐ Other
If other, please briefly describe:

Energy Technology Substitution:  
X  Discrete technology choices
☐ Expansion and decline constraints
☐ System integration constraints
☐ Other

Energy Service sectors
☐ Transportation
☐ Industry
☐ Residential and commercial 

If others, please give brief details or number:

Please list land use types: GEM-E3 does not distinguish between alternative land use types.

Other Resources
☐ Water
☐ Metals
☐ Cement
☐ Other

If others or specifics, please give brief details

Emissions and climate
Greenhouse Gases coverage: CO2, CH4, N2O, HFCs, CFCs, SFs

Pollutants and non-GHG forcing agents: NOx, SOx

Modelling of Climate indicators: GEM-E3 model does not include climate indicators


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