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 (, 2) analysis of carbon tax and microeconomic climate mitigation interventions in Chile within MAPS Project (, 3) risk analysis of climate mitigation pathways within Horizon2020 project (

keywords: DSGE, environmental economics, technological change

JEL codes:

publication year: 2016

language : English

thematic categories :

Paweł Kowal

Institute for Structural Research (IBS)

Marek Antosiewicz

Institute for Structural Research (IBS); SGH Warsaw School of Economics

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