Our Global Macro-econometric Model
E3ME is a global, macro-econometric model that is designed to address the major economic, social and environmental challenges that the world is facing. Developed over the last 25 years, it is one of the most advanced models of its type. Its strengths are:
- 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 across income groups) are important model outcomes.
- An econometric specification that addresses concerns about conventional macroeconomic models and provides a strong empirical basis for analysis. The model 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 E3ME to capture two-way linkages and feedbacks between each of these 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 wider European and global policy analysis.