Analytical toolkit

Analytical toolkit

Analytical toolkit

The CAKE team has a range of analytical tools at its disposal, which have been developed in previous LIFE projects. These include the d-Place general equilibrium model (at a global scale) and the sectoral models operating at an EU scale (i.e. the energy (MEESA), transport (TR3E) and agriculture (EPICA) models). The following brief descriptions are provided for each model:

• The d-Place model is a recursive, dynamic, multi-sectoral Computed General Equilibrium (CGE) model with global coverage, based on current GTAP data. The model differentiates between 20 industries/commodities and 19 regions, including 9 EU and 10 non-EU regions. The model operates within a 5-year timeframe, with a projected time horizon of the year 2050. From a methodological perspective, the d-Place model is founded on conventional Computable General Equilibrium (CGE) formulations, incorporating nested Leontief-CES production functions, marginal cost pricing, and trade that is based on Armington assumptions. The model implements the EU ETS with emission reduction targets, as well as technical options for emission reductions and energy efficiency improvements, thus rendering it an excellent tool for analysing different climate policy strategies.

• The MEESA model is a linear energy optimisation model that currently covers EU countries, in addition to the United Kingdom, Norway and Switzerland. The model under consideration encompasses approximately 50 energy technologies, including conventional units, renewable energy sources (RES), bioenergy with carbon capture and storage (BECCS), carbon capture and storage (CCS), green hydrogen units, and energy storage (batteries, hydrogen, pumped storage). The model employs an annual disaggregation of demand into characteristic days for different seasons, with the allocation of demand occurring within 2-hour time slots. The model also considers the electricity demand for BEVs and its impact on the energy system.

• TR3E is a partial equilibrium model that is based on a bottom-up approach. The transport model incorporates the four primary transport modes (road, rail, air and water) for the conveyance of passengers and freight, along with a maximum of 37 additional transport modes. It also encompasses the characteristics of various engine types and the technology options available for each mode. TR3E encompasses all 28 countries (EU + UK), and is resolved with a time horizon extending up to 2050 within an annual timeframe.

• EPICA can be defined as an optimisation model. The scope of the study encompasses the 27 EU member states and the UK. The structure of the agricultural sector in each country is optimised separately. The d-Place model is employed to facilitate the iterative exchange of solutions, with the objective of ensuring market equilibrium in the agricultural sector at the EU level. In order to comprehensively assess the responses of the agricultural sector to policy actions, the optimisation module at its basic level is divided into interlinked crop and livestock production (19 activities), each represented by both extensive and intensive production intensities. The model incorporates the elements of labour, nutrients (N, P, K) and animal feed balances. The model’s output encompasses the projected supply and prices of agricultural products, as well as greenhouse gas emissions from the sector, for all countries considered under assumed climate policy scenarios.