A State-Level Economic Impact Model
E3-US is an innovative new energy-environment-economy model, owned and operated by Cambridge Econometrics.
It allows policy makers to assess the impact of policy at either the state or national level, including spill over impacts across states.
The model follows the approach used in our world-class global E3ME model and brings the same key advantages over many other existing tools:
a high level of disaggregation of sectors and household groups
over 70 sectors defined in each state
integrated treatment of the energy system, including a bottom-up representation of the power sector
an economic specification that gives the model a strong empirical grounding
short and long-term assessment options
Using the model to explore carbon tax in the U.S.
The model was first applied to explore the impact of a carbon tax on the U.S. economy – the results showed that such a policy could deliver economic benefits under the right conditions. You can read more about the impact of a carbon tax in the USA here.
For more information about E3-US and its applications, please contact Dan Hodge.