GEM-CCGT is a general equilibrium model designed for analysing the effects of multilateral agreements on climate change and trade. As a general equilibrium model, it implies that resources are allocated efficiently (all the markets of an economy are in equilibrium).
The model is mainly used for:
impact analysis of current and future trade agreements;
impact analysis of greenhouse-gas abatement strategies under the Kyoto Protocol;
impact analysis of the interaction between trade and environmental policies.
The main features of the model are:
yearly solution up to 2030;
imperfect competition with product differentiation and firms competing in quantities (Cournot framework);
exogenous capital flows, fixed costs at firm level;
the number of firms changes in such way that the output price equals average cost;
perfect competition in the labour market.