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Home > By DEPARTMENTS > Management > Green Economy

Climate Economics and the Green Economy

Planning requires facts. Facts require analysis. Analysis today...requires models. And the EPA helps companies and communities analyze the climate data that is being gathered. Here are the key climate analysis modeling tools.

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Understanding the economic effects of greenhouse gas (GHG) emission reductions is essential to assessing climate change scenarios. Data has been accumulating over the past decades so that in-depth analysis can now be conducted to help track and evaluate trends and impact scenarios. Models help.

The US EPA assesses economic implications of policies to reduce the greenhouse gas intensity of the U.S. economy. These economy-wide analyses are complemented by studies in key areas of economic interaction in climate scenarios, including the mitigation of non-CO2 greenhouse gases, and carbon sequestration and land use change in the forestry and agriculture sector. Given the long time horizon of global greenhouse gas concentrations, EPA also analyzes long term climate scenarios.

Climate Economic Modeling

Given the complexity of economic and environmental interactions underlying the climate change issue, no one model can address all of the questions surrounding a climate change economic analysis. To provide an accurate representation of potential climate change mitigation programs and strategies, EPA employs an array of modeling tools and data. For more information about the modeling tools used by EPA, please visit the Climate Economic Modeling page.

You can find EPA analyses of current bills in the EPA Economic analysis website pages.

Climate Economic Models

Below is a list of the specific models used by EPA, categorized by model type: economy-wide models, mitigation models, integrated assessment models, and detailed sector models. Each model has certain strengths that, when used alongside other models and analytical tools, can produce thorough analyses of climate change mitigation programs.
  • Economy-Wide Models
    • Applied Dynamic Analysis of the Global Economy (ADAGE)

      ADAGE is a dynamic computable general equilibrium (CGE) model capable of examining many types of economic, energy, environmental, climate change mitigation, and trade policies at the international, national, U.S. regional, and U.S. state levels.

    • Intertemporal General Equilibrium Model (IGEM)

      IGEM is a model of the U.S. economy with an emphasis on energy and environmental aspects. It is a detailed multi-sector model covering 35 industries.

  • Mitigation Models
    • Non-CO2 Projections and Abatement Models

      These are engineering-economic models capturing the relevant cost and performance data on over 15 sectors emitting the non-CO2 GHGs.

    • Forestry and Agricultural Sector Optimization Model - Greenhouse Gas Version (FASOMGHG)

      The model simulates the allocation of land over time to competing activities in both the forest and agricultural sectors. In doing this it simulates the resultant consequences for the commodity markets supplied by these lands and, importantly for policy purposes, the net greenhouse gas (GHG) emissions.

    • Global Timber Model (GTM)

      GTM is an economic model capable of examining global forestry land-use, management, and trade responses to policies. In responding to a policy, the model captures afforestation, forest management, and avoided deforestation behavior. The model estimates harvests in industrial forests and inaccessible forests, timberland management intensity, and plantation establishment, all important components of both future timber supply and carbon flux. The model also captures global market interactions. The model has been used to explore a variety of climate change mitigation policies, including carbon prices, stabilization, and optimal mitigation policies.

  • Integrated Assessment Model
    • Mini-Climate Assessment Model (MiniCAM)

      The MiniCAM is an integrated assessment model that focuses on the world's energy and agriculture systems, atmospheric concentrations of greenhouse gases (CO2 and non-CO2) and sulfur dioxide, and consequences regarding climate change and sea level rise.

  • Detailed Electricity Sector Model
    • Integrated Planning Model (IPM)

      IPM is a multi-regional model of the U.S. electric power sector. EPA uses the Integrated Planning Model (IPM) to analyze the projected impact of environmental policies on the electric power sector in the 48 contiguous states and the District of Columbia. IPM can be used to evaluate the cost and emissions impacts of proposed policies to limit emissions of sulfur dioxide (SO2), nitrogen oxides (NOx), carbon dioxide (CO2), and mercury (Hg) from the electric power sector.



Edited by Carolyn Allen, owner/editor of California Green Solutions
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