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Climate Economic Modeling
EPA uses a variety of economic models and analytical tools when conducting climate economic analyses. 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)
- Intertemporal General Equilibrium Model (IGEM)
- Mitigation Models
- Non-CO2 Projections and Abatement Models
- Forestry and Agricultural Sector Optimization Model - Greenhouse Gas Version (FASOMGHG)
- Global Timber Model (GTM)
- Integrated Assessment Model
- Detailed Electricity Sector Model
To see results of economic analyses conducted by EPA, please see the Economic Analysis page.
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. To investigate proposed policy effects, the CGE model combines a consistent theoretical structure with economic data covering all interactions among businesses and households.
ADAGE has three distinct modules: International, US Regional, and Single Country. Each module relies on different data sources and has a different geographic scope, but all have the same theoretical structure which allows for detailed regional and state-level results that incorporate international impacts of policies. The model is developed and run by RTI International for EPA. For more information please visit the ADAGE model Web page 
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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. IGEM is a dynamic model, which depicts growth of the economy due to capital accumulation, technical change and population change. It also depicts changes in consumption patterns due to demographic changes, price and income effects. The model is designed to simulate the effects of policy changes, external shocks and demographic changes on the prices, production and consumption of energy, and the emissions of pollutants. The main driver of economic growth in this model is capital accumulation and technological change. It also includes official projections of the population, giving us activity levels in both level and per-capita terms.
IGEM is developed and run by Dale W. Associates for EPA. For more information please visit the IGEM Web page .
NON-CO2 PROJECTIONS AND ABATEMENT MODELS
EPA develops and houses projections and economic analyses of emission abatement through the use of extensive bottom-up, spreadsheet models. These are engineering-economic models capturing the relevant cost and performance data on over 15 sectors emitting the non-CO2 GHGs.
For more information about non-CO2 projections and abatement models please see U.S. EPA climate economics non-CO2 mitigation Web page.
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. The model was developed to evaluate the welfare and market impacts of public policies and environmental changes affecting agriculture and forestry. To date, FASOMGHG and its predecessor models FASOM and ASM have been used to examine the effects of GHG mitigation policy, climate change impacts, public timber harvest policy, federal farm program policy, biofuel prospects, and pulpwood production by agriculture among other policies and environmental changes.
The principal model developer is Dr. Bruce McCarl, Department of Agricultural Economics, Texas A&M University. Please visit the FASOMGHG Web page for more information about the model. For more information about forestry and agriculture models please visit the U.S. EPA Carbon Sequestration in Forestry and Agriculture Web page.
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.
The principal model developer is Brent Sohngen, Department of Agricultural, Environmental, and Development Economics, Ohio State University. Other key developers and collaborators over the life of the model include Robert Mendelsohn, Roger Sedjo, and Kenneth Lyon. For additional information, please visit Dr. Sohngen’s website , which includes papers on various applications and input datasets.
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. It has been updated many times since the early eighties to include additional technology options. MiniCAM is capable of incorporating carbon taxes and carbon constraints in conjunction with the numerous technology options including carbon capture and sequestration.
The model has been exercised extensively to explore how the technology gap can be filled between a business-as-usual emissions future and an atmospheric stabilization scenario. The MiniCAM model is designed to assess various climate change policies and technology strategies for the globe over long time scales. The model runs in 15-year time steps from 1990 to 2095 and includes 14 geographic regions.
MiniCAM is developed and run at the Joint Global Change Research Institute, University of Maryland. For more information please visit the MiniCAM Web page .
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. The model was a key analytical tool in developing the Clean Air Interstate Regulation (CAIR) and the Clean Air Mercury Rule (CAMR).
For more information about IPM, please visit the model Web page.