Advanced module for environmental policies
Results from theoretical and empirical modelling indicate that recognising the endogenous nature of technological change (ETC) alters the effect on both the environment and the economy of energy-related policies. By analysing ETC, a new perspective has arisen regarding environmental policy instruments and their potential significance. It is only recently that models with ETC are seen as the suitable way to handle sustainability questions. Therefore major developments are needed for a proper analysis of energy-related policies and technological transitions. In light of this, the NEMESIS project has created new insights for technological change in different categories of applied models. The categories include econometric, general equilibrium and technical-economic ones. The project has employed various approaches for developing insight regarding technological transformation towards non-carbon emitting production and growth. These developments gave rise to a more detailed module for the electricity generating sectors. The idea is to represent technology/fuel choices and non-CO2 greenhouse gases in different energy demand and supply sectors with considerable analytical depth. The NEMESIS energy module database has been revamped and the model has been graduated to modified EUROSTAT energy balances.
