E3ME: a 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.
Unlike competing models which are based on theory that has been shown repeatedly to be at odds with the observed reality, E3ME includes a representation of human behaviour that is validated by historical economic data.
- 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
E3ME covers 61 global regions, with a detailed sectoral disaggregation in each one, and projects forwards annually up to 2050. It is frequently applied at national level, in Europe and beyond, as well as for global policy analysis.
The E3ME website provides further information, including the full technical manual.
For more information about E3ME and its applications, please contact Sophie Heald.