Our Global Macro-econometric Model

E3ME is a global, macro-econometric model designed to address major economic and economy-environment policy challenges.

Developed over the last 25 years, it is one of the most advanced models of its type.

Its strengths are:

• A high level of disaggregation, enabling detailed analysis of sectoral and country-level effects from a wide range of scenarios
• Social impacts (including unemployment levels and distributional effects) are important model outcomes.
• Its econometric specification addresses concerns about conventional macroeconomic models and provides a strong empirical basis for analysis.
• It can fully assess both short and long-term impacts and is not limited by many of the restrictive assumptions common to Computable General Equilibrium (CGE) models.
• Integrated treatment of the world’s economies, energy systems, emissions and material demands. This enables it to capture two-way linkages and feedbacks between these components.