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 an empirical, large-scale model, representing 20 World regions or 24 European countries, linked through endogenous bilateral trade. 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;
public finance, stabilisation policies and their implications on trade, growth and the behaviour of economic agents.
GEM-E3 can be used either in the single-country version where the rest of the world is an aggregate of all other countries/regions or the multi-country version where individual countries are linked by endogenous (price dependent) bilateral trade flows or trade pools.
GEM-E3 Europe: Eurostat, GEM-E3 World: GTAP 4 database. Foreign trade data: COMEXT database. Environmental data on emissions have been compiled from European Commission statistics (SIRENE) and from the ExternE project. household behaviour (8 sets of equations); firms behaviour (11 sets of equations); domestic demand and trade flows ( 8 sets of equations); derived prices (5 sets of equations); income accounts (4 sets of equations);
for macro-economic variables (GDP, production, investment, final and intermediate consumption, external trade);
for production, value added, investment, final and intermediate consumption, exports, imports, relative prices and employment by sector;
for energy-related variables, such as energy production, final and intermediate energy consumption by category, energy prices, atmospheric emissions.