PRIMES is a partial equilibrium model focusing on European Union energy markets and as such very useful in analysing in detail the impact of various forms of carbon emission trading on energy markets. On the other hand it fails to capture some of the impacts which carbon emission trading may induce in the wider economy (e.g. exchange rate effects, trade balances). PRIMES generates results for each of the 14 Member States (Luxembourg is excluded) separately and has also been used to investigate the effects of carbon emission trading limited to a subset of Member States. Because of the detailed sectoral breakdown it allows also for the analysis of carbon emission trading restricted to a number of economic sectors.