E3ME is a dynamic, computer-based, global macroeconomic model which represents the three pillars of sustainability: economy, society and environment. E3ME’s detailed sectoral disaggregation is important for assessing interactions between the pillars. The model is highly empirical in its approach.

This website describes the core features of the E3ME model. Several specific national models (including some with sub-national disaggregation) have been developed from E3ME and share the same underlying properties. Each of these models is described below and is allocated its own page (see links above).


E3ME is our global model and our main tool for macroeconomic analysis. It is now used throughout the world, especially for the assessment of climate and energy policy. International trade is an important part of the analysis.

It is designed to assess both national and global policy challenges and give increased certainty to decision makers.

For more information, please contact Sophie Heald.

Examples of model use:

  • to analyse the impacts of Energy-Environment-Economy (E3) policies
  • to assess the potential impacts of new technologies within a resource constrained world
  • to enable detailed analysis of distributional (e.g. by sector and household type) impacts of policies aimed at meeting societal challenges
Find out more about the E3ME model


e3-India is a dynamic macro-econometric simulation model, developed as a tool for state-level analysis in India. It covers 28 states and 4 union territories of India.

The model enables policymakers and stakeholders to assess various policy impacts at a significantly higher geographical resolution than has previously been possible in India.

For more information, please contact Unnada Chewpreecha.

Examples of model use:

  • to assess the influence of new technologies in the power sector on electricity prices and wider economic performance
  • to assess different strategies across states to reducing greenhouse gas emissions while promoting development
  • to understand how policies enacted in one state may influence economic development in other states; and distributional impacts across states
Find out more about the E3-India model


e3-US is an innovative tool that allows policy makers to assess policy impacts at the state level, reflecting the diversity of economic conditions across the US.

Key economic and social outputs from the model include GDP, employment and unemployment. The model results also include energy consumption and greenhouse gas emissions.

For more information, please contact Jon Stenning.

Examples of model use:

  • to understand the distributional impacts of a low-carbon transition across sectors and different household groups, including the impacts of carbon taxation
  • to analyse trade linkages between states and how performance in one state may affect neighbouring areas
  • to assess the implications for the economy of either a technology driven solar ‘revolution’ or a federally implemented Green New Deal
Find out more about the E3-US model


e3-Brazil was originally designed to assess the economic and labour market impacts of Environmental Tax Reform in Brazil.

It can also be used to assess a range of economic and environmental measures including fiscal policy, energy efficiency and renewable electricity generation.

Standard outputs from the model include employment, GDP, prices and trade.

For more information, please contact Eva Alexandri.

Examples of model use:

  • to assess the economic and labour market implications of Environmental Tax Reform
  • to analyse the impact on GDP and employment on reform of the electricity sector
  • to explore how changes in taxation policy might affect trade patterns
Find out more about the E3-Brazil model


The e3-Thailand model was constructed to quantitatively assess the impacts of different carbon pricing policies.

It is also suitable for analysing other energy, climate, economy and labour market policies. It is designed to assess policy in a highly empirical structure.

For more information, please contact Unnada Chewpreecha.

Examples of model use:

  • to assess suitable policy options for carbon pricing instruments to support Thailand’s climate change mitigation goals
  • to analyse the impact of changes in wholesale energy prices on up to 24 different energy users
  • to explore the impact of policies, such as a carbon tax, on the competitiveness of up to 70 different economic sectors
Find out more about the E3-Thailand model

FTT (Future Technology Transformations)

A cutting-edge model of technology diffusion that is applied to a range of different energy sectors. FTT is based on innovation theory and evolutionary dynamics.

Currently there are FTT models for the power sector, passenger vehicles, the steel sector and household heading. Each one is linked to the E3ME model with two-way linkages between the technology dynamics and wider economy.

For more information, please contact Pim Vercoulen.

Key features:

  • to assess the potential outcomes from policies designed to promote innovation in the energy sector
  • to understand the interactions between energy-sector policies, for example between carbon taxation, subsidies for new technologies and restrictions on the use of old technologies
  • to analyse different paths of technology diffusion and their impacts on the wider economy, for example through investment and trade flows
Find out more about the FTT model

This website has received funding from the European Union’s Horizon 2020 Framework Programme for Research and Innovation under Grant Agreement number 727114.