In this report we describe MEMO III - a large scale, multisector, dynamic stochastic general equilibrium model that was constructed in IBS for the purpose of climate policy assessment. The model features a KLEMS production structure which is directly calibrated to an Input-Output matrix of a given region or country. Special care is devoted to the treatment of the open economy, labour market and endogenous technology adaptation of firms. Successful applications of this model include: 1) analysis of policies promoting resource efficiency within FP7 DYNAMIX project (http://dynamix-project.eu/), 2) analysis of carbon tax and microeconomic climate mitigation interventions in Chile within MAPS Project (http://www.mapsprogramme.org/), 3) risk analysis of climate mitigation pathways within Horizon2020 project (http://transrisk-project.eu/).

keywords: DSGE, environmental economics, technological change

JEL codes:

publication year: 2016

language : English

thematic categories :

authors:
Paweł Kowal

Institute for Structural Research (IBS)

Marek Antosiewicz

Institute for Structural Research (IBS)

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