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Models and Research Instruments
Intertemporal Computable Equilibrium System - ICES

ICES is a recursive dynamic multiregional Computable General Equilibrium (CGE) model developed by the Fondazione Eni Enrico Mattei (FEEM) to produce a picture of the world economy.

ICES is a recursive dynamic multiregional Computable General Equilibrium (CGE) model developed by the Fondazione Eni Enrico Mattei (FEEM) to produce a picture of the world economy.
 
ICES is used to assess impacts of climate change on the economic system and to study mitigation and adaptation policies. The model’s general equilibrium structure allows for the analysis of market flows within a single economy. This implies going beyond the “simple” quantification of direct costs, to offer an economic evaluation of second and higher-order effects within specific scenarios either of climate change, climate policies or different trade and public-policy reforms in the vein of conventional CGE theory. Sustainability is also a crucial aspect that envisages the harmonization of different types of policies to pursue sustainable development while also protecting the environment and guaranteeing a responsible use of natural resources. For this purpose, ICES is at the core of the APPS framework, offering a comprehensive assessment of current well-being and future sustainability based upon 28 indicators related to the 17 Sustainable Development Goals (SDGs).
 
The model is flexible in regional aggregation and time horizon up to 2050. The Figure below summarises the interaction of regions or countries through economic flows within a country as well as with the rest of the world (Row). In each optimization step, the model gives a snapshot of domestic economic flows among actors (firm, private household, government) in each region and international trade with the rest of the world.

ICES is used to assess impacts of climate change on the economic system and to study mitigation and adaptation policies. The model’s general equilibrium structure allows for the analysis of market flows within a single economy. This implies going beyond the “simple” quantification of direct costs, to offer an economic evaluation of second and higher-order effects within specific scenarios either of climate change, climate policies or different trade and public-policy reforms in the vein of conventional CGE theory. Sustainability is also a crucial aspect that envisages the harmonization of different types of policies to pursue sustainable development while also protecting the environment and guaranteeing a responsible use of natural resources. For this purpose, ICES is at the core of the APPS framework, offering a comprehensive assessment of current well-being and future sustainability based upon 28 indicators related to the 17 Sustainable Development Goals (SDGs).

The model is flexible in regional aggregation and time horizon up to 2050. The Figure below summarises the interaction of regions or countries through economic flows within a country as well as with the rest of the world (Row). In each optimization step, the model gives a snapshot of domestic economic flows among actors (firm, private household, government) in each region and international trade with the rest of the world.

ICES has been further developed in two additional versions considering two specific features important for policy design and impact analysis. One version regards the need for results with a sharper focus, since climate change impacts are differentiated geographically. Therefore, ICES has a regionalized version, for the EU Mediterranean area. The other version regards the implications on the role of the public sector on the economy for policy assessments. For this reason, the model has also been extended with a more detailed description of the public sector.

Visit the ICES web site!

 

Researchers


Support from researchers outside the team has been very important. In particular we would like to thank Alvaro Calzadilla, Elisa Lanzi, Elisa Portale, Ruslana Palatnik, Roberta Pierfederici, Katrin Rehdanz, Renato Rosa, Roberto Roson, and Richard Tol.

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For information and comments, please contact:
Francesco Bosello
Fondazione Eni Enrico Mattei
Isola di San Giorgio Maggiore - I-30124 Venice, Italy
Tel: +39.041.2700449; Fax: +39.041.2700413
E-mail: francesco.bosello@feem.it





 
 
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