These were the models used in carrying out the project.


This is a dynamic econometric input-output model developed by the European Commission’s Joint Research Centre in collaboration with the Austrian Institute of Economic Research and Joanneum Research. The model captures the interactions of consumption, production, labour market, international trade and environment.

The version of FIDELIO used in the project covered 27 EU countries and one Rest of the World region, 59 products, 59 sectors, 3 labour skill levels in two dimensions (i.e. hours per person), as well as 5 satellite extensions including energy, air emissions, land, water and materials.

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This model was developed at TNO and is a large scale and highly detailed global model built on the input-output database EXIOBASE. It is a macro-economic Computable General Equilibrium (CGE) model that divides the global economy in 43 countries and a Rest of World region, with 129 industry sectors per country.

The Computable General Equilibrium (CGE) model accounts for the interactions/feedbacks (a) between price and demand/supply quantities and (b) between economic agents at the macro and sectoral level. For example, it shows how different materials, products and services are used by the construction sector depending on assumptions about production and technology. If the efficiency of material use in the construction sector is improving over time, the model calculates:

Direct effect: change in material use per unit of output of the sector
Indirect or rebound effect: change in price of construction services as well as change in the total output of the construction sector over time. This outcome is translated in EXIOMOD into change in physical material used and extraction, as well as change in generated emissions and waste.

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E3ME and E3MG


The energy-environment-economy model at the global level (E3MG) covers 21 world regions that include all major developing economies, e.g. Brazil, Mexico, India and China. The European Union is also represented in E3MG and this allows studying the impacts of the EU climate policy. This model was applied in previous Impact Assessments for the European Commission and the United Nations.

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E3ME is a computer-based macroeconometric model of Europe's economy, energy systems and the environment. The model divides the economy into 43 sectors (69 in Europe) and is used to study the interactions between energy supply and demand and economic development. Post-Keynesian in design, E3ME was originally developed through the European Commission's research framework programmes. The most recent version is global in scope and is widely used for assessment of energy and climate policy both inside and outside Europe.

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