Analysis: Current emissions targets could keep planet below 2°C temperature rise, but a turbocharged effort is needed ConversationEDU NatureClimate
is a partial equilibrium IAM, achieving equilibrium between energy supply and demand in each represented sector, accounting for the changes in energy prices resulting from changes in fuels and technologies used to satisfy energy-service demands in these sectors. The model operates on a ‘recursive dynamic’ cost-optimization basis and solves for the least-cost energy system in a given period before moving onto the next period and performing the same process.
GEMINI-E3 differs in model solution in that it is a general equilibrium IAM, featuring a more detailed, multiple-sector representation of the economy that considers how the impacts of specific policies spread across economic sectors and regions affect environmental parameters. This means that, despite also being driven by market equilibrium, this equilibrium is assumed to take place simultaneously in each market/region.
All four models differ in the way technologies are chosen across sectors: GCAM uses a logit technology choice mechanism, which causes gradually decreasing returns as a technology is further diffused; TIAM uses a winner-takes-all optimization mechanism, implying that the cheapest technology can dominate all new deployment; GEMINI uses a nested constant elasticity of substitution function; while MUSE follows an agent-based approach, where agent decision goals and strategies determine technology...
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