Modelling the Impact of Energy and Climate Policies

Climate change mitigation and the transformation to a global low-carbon economy is a pressing issue in policy discussions and international negotiations. The political debate is supported by the scientific community with a large number of projections, pathway simulations and scenario analyses of the global energy system and its development over the next decades. These studies are often based on numerical economy-energy-environment-climate models. This DIW Roundup provides an overview of the model types used in the academic arena to evaluate and quantify the potential impacts of energy and climate policy measures. Their aim is to translate specific mitigation pathways into an economic and socio-political assessment, in order to identify trade-offs between different mitigation options. Since no single modelling framework can adequately capture all relevant aspects, a comprehensive assessment requires a mix of models and approaches.