Getting to Know GMMET: The Global Macroeconomic Model for the Energy Transition

By Benjamin Carton, Christopher Evans, Dirk V Muir, Simon Voigts

December 22, 2023

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Benjamin Carton, Christopher Evans, Dirk V Muir, and Simon Voigts. Getting to Know GMMET: The Global Macroeconomic Model for the Energy Transition, (USA: International Monetary Fund, 2023) accessed November 23, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper presents GMMET, the Global Macroeconomic Model for the Energy Transition, and provides documentation of the model structure, data sources and model properties. GMMET is a large-scale, dynamic, non-linear, microfounded multicountry model whose purpose is to analyze the short- and medium-term macroeconomic impact of curbing greenhouse gas (GHG) emissions. The model provides a detailed description of GHG-emitting activities (related to both fossil fuel and non-fossil-fuel processes) and their interaction with the rest of the economy. To better capture real world obstacles of the energy transition, GMMET features a granular modelling of electricity generation (capturing the intermittency of renewables), transportation (capturing network externalities between charging stations and electric vehicle adoption), and fossil fuel mining (replicating estimated supply elasticities at various time horizons). The model also features a rich set of policy tools for the energy transition, including taxation of GHG emissions, various subsidies, and regulations.

Subject: Commodities, Electricity, Environment, Fuel prices, Greenhouse gas emissions, Inflation, Non-renewable resources, Prices

Keywords: Climate mitigation policy, Electricity, Fossil gas price, Fuel prices, GHG price, GHG-emitting activity, Global, Greenhouse gas, Greenhouse gas emissions, Inflation, Non-renewable resources, Policy coordination, Sectors in the United States

Publication Details

Pages:

88
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2023/269
Stock No:

WPIEA2023269
ISBN:

9798400262326
ISSN:

1018-5941

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