Reference card - GEM-E3

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The reference card is a clearly defined description of model features. The numerous options have been organized into a limited amount of default and model specific (non default) options. In addition some features are described by a short clarifying text.

Legend:

  • not implemented
  • implemented
  • implemented (not default option)

About

Name and version

GEM-E3

Institution and users

Institute of Communication And Computer Systems (ICCS), Greece, .

Model scope and methods

Model documentation: Model scope and methods - GEM-E3

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.

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.

Anticipation

Myopic

Temporal dimension

Base year:2011, time steps:Five year time steps, horizon: 2050

Spatial dimension

Number of regions:38

  1. 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, Energy efficiency standards, CO2 standards, Emission reduction targets, Trade agreements.


Socio economic drivers

Model documentation: Socio-economic drivers - GEM-E3

Exogenous drivers

  • Exogenous GDP
  • Total Factor Productivity
  • Labour Productivity
  • Capital Technical progress
  • Energy Technical progress
  • Materials Technical progress
  • GDP per capita
  • Active population growth
  • Learning-by-doing


Development

  • GDP per capita
  • Income distribution in a region
  • Urbanisation rate
  • Education level
  • Labour participation rate


Macro economy

Model documentation: Macro-economy - GEM-E3

Economic sectors

  • Agriculture
  • Industry
  • Energy
  • Transport
  • Services
  • other

Note: 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

Cost measures

  • GDP loss
  • Welfare loss
  • Consumption loss
  • Area under MAC
  • Energy system costs

Trade

  • Coal
  • Oil
  • Gas
  • Uranium
  • Electricity
  • Bioenergy crops
  • Food crops
  • Capital
  • Emissions permits
  • Non-energy goods
  • Agriculture
  • Ferrous and non ferrous metals
  • Chemical Products
  • Other energy intensive
  • Electric Goods
  • Transport equipment
  • Other Equipment Goods
  • Consumer Goods Industries

Note: The model links all countries and sectors through endogenous bilateral trade transactions.


Energy

Model documentation: Energy - GEM-E3

Behaviour

The GEM-E3 model endogenously computes energy consumption, depending on energy prices, realised energy efficiency expenditures and autonomous energy efficiency improvements. Each agent decides how much energy it will consume in order to optimise its behaviour (i.e. to maximise profits for firms and utility for households) subject to technological constraints (i.e. a production function). At a sectoral level, energy consumption is derived from profit maximization under a nested CES (Constant Elasticity of Substitution) specification. Energy enters the production function together with other production factors (capital, labour, materials). Substitution of energy and the rest of the production factors is imperfect (energy is considered an essential input to the production process) and it is induced by changes in the relative prices of each input. Residential energy consumption is derived from the utility maximization problem of households. Households allocate their income between different consumption categories and savings to maximize their utility subject to their budget constraint. Consumption is split between durable (i.e. vehicles, electric appliances) and non-durable goods. For durable goods, stock accumulation depends on new purchases and scrapping. Durable goods consume (non-durable) goods and services, including energy products. The latter are endogenously determined depending on the stock of durable goods and on relative energy prices.

Resource use

  • Coal
  • Oil
  • Gas
  • Uranium
  • Biomass

Electricity technologies

  • Coal
  • Gas
  • Oil
  • Nuclear
  • Biomass
  • Wind
  • Solar PV
  • CSS
  • Hydropower
  • CCS

Conversion technologies

  • CHP
  • Heat pumps
  • Hydrogen
  • Fuel to gas
  • Fuel to liquid

Grid and infrastructure

  • Electricity
  • Gas
  • Heat
  • CO2
  • H2

Energy technology substitution

  • Discrete technology choices
  • Expansion and decline constraints
  • System integration constraints


Energy service sectors

  • Transportation
  • Industry
  • Residential and commercial


Land-use

Model documentation: Land-use - GEM-E3; Non-climate sustainability dimension - GEM-E3

Land-use

  • GEM-E3 considers land as a separate production factor

Other resources

Model documentation: Non-climate sustainability dimension - GEM-E3

Other resources

  • Water
  • Metals
  • Cement

Emissions and climate

Model documentation: Emissions - GEM-E3; Climate - GEM-E3

Green house gasses

  • CO2
  • CH4
  • N2O
  • HFCs
  • CFCs
  • SFs

Pollutants

  • NOx
  • SOx
  • BC
  • OC
  • Ozone

Climate indicators

  • CO2e concentration (ppm)
  • Radiative Forcing (Wm2 )
  • Temperature change (C°)
  • Climate damages $ or equivalent

Note: GEM-E3 model does not include climate indicators.