The Global Excellence in Climate and Energy Modelling (GEMCLIME) project focused on essential energy economics and climate change aspects. The project addressed global, complex scientific and policy issues. It took a comprehensive approach to model the effects of climate and energy policies. What are the economic drivers of climate change and energy transition? What are the impacts of climate and energy policies? What are the responses to climate and energy challenges?
The first part of the project focused on consumer behaviour and attitudes in energy markets. One goal was to examine household transportation patterns, passenger vehicle ownership, and the potential for electro-mobility. What are users’ preferences for electric vehicles? Economic models developed by GEMCLIME explain how energy users behave in the context of specific economic and policy conditions.
The second part concentrated on the examination of non-competitive markets. The goals included analysing the potential for bioenergy use, the characteristics of the energy-food-environment linkages, and energy security and supply reliability if renewable energy sources were used more frequently. What, for example, would be the impact of increased energy efficiency on household energy consumption? Research results show that consumers are willing to install installation retrofits when the price of energy increases.
The third part dealt with the modelling of the effects of mitigation and adaptation policies. The goal was to incorporate the effects of climate change policies into integrated impact assessment models. This goal entails extending and updating the economic models used to assess the impacts of greenhouse gas mitigation policies, energy market regulations, changes in the fuel mix in energy generation, or climate change policies.
The fourth part examined the interconnections, benefits, and externalities between various energy markets and phenomena. How are markets in the energy sector interconnected? What are the effects of trends and volatility in one market on prices and trade in other markets? The project examined health risks and people’s perceptions of climate change risks and quantified external costs attributable to energy generation.
The fifth part discussed the political economy of climate change and energy policies. The study looked into public acceptance of these policies. Researchers simulated international environmental negotiations, examined the interaction of climate change risks with the private sector, and improved carbon market modelling. Also, researchers investigated the institutional framework in developing countries to better understand public perception and, ultimately, the impact of climate and energy policies.
The sixth part examined the economics of climate and energy distribution and development. One critical goal was to reduce distributive effects and economic inequality. In particular, for developing countries, researchers addressed the thorny question of the interplay between climate change mitigation and economic growth.
To realise these six parts, GEMCLIME coordinated the secondment of staff members between five beneficiary institutions in the European Union and fifteen partner institutions worldwide. One axis of collaboration was between European Union institutions and renowned institutions in Australia, Canada, New Zealand, and the United States. Another axis of cooperation connected European institutions with institutions in developing countries, including South Africa, Singapore, and Chile.
The project supported advanced training and knowledge exchange activities on the economics of climate and energy policy. PhD students, early-stage researchers, and experienced researchers benefited from this stimulating experience. Participants collaborated on joint peer-reviewed articles, working papers, conference papers, and new project proposals to granting organisations, among other things. Finally, the project organised national and international conferences where participants formed networks and shared their knowledge.
The findings advanced fundamental economics knowledge and provided evidence-based policy recommendations. Researchers recommended selecting and designing effective policy instruments to mitigate climate change and aid in the transition to sustainable energy use. Citizens concerned about climate change can comprehend the implications of policies aimed at adapting to and mitigating climate change.
