GE3AR – Global Energy Environment Economic AppRaisal
Contact: Francesco Bosello
GE3AR (Global Energy Environment Economic AppRaisal) is a model designed to assist in the study of the socio-economic dimension of climate change. GE3AR is a recursive dynamic multiregional Computable General Equilibrium (CGE) model developed to assess impacts of climate change on the economic system and to study mitigation and adaptation policies. Its main (but not exclusive) purpose is to assess the final welfare implication of climate change impacts on world economies. The model’s general equilibrium structure allows for the analysis of market flows within a single economy and international flows with the rest of the world. This implies going beyond the “simple” quantification of direct costs, to offer an economic evaluation of second and higher-order effects within specific scenarios either of climate change, climate policies or different trade and public-policy reforms in the vein of conventional CGE theory. The model is flexible in regional aggregation and time horizon up to 2050. The Figure below summarises the interaction of regions or countries through economic flows within a country as well as with the rest of the world (Row). In each optimization step, the model gives a snapshot of domestic economic flows among actors (firm, private household, government) in each region and international trade with the rest of the world.
GE3AR has been further developed considering two specific features important for policy design and impact analysis. One is the need for results with a sharper focus, since climate change impacts are differentiated geographically. Therefore, GE3AR has a regionalized version, for the EU Mediterranean area. The other feature regards the role of the public sector and its implications for policy assessments. For this reason, the model has also been extended with a more detailed description of the public sector.