Energy

Macroeconomic modelling

Macroeconomic modelling

DG Energy undertook a two-year study aimed to improve understanding and modelling of the links between EU energy-related policies and macroeconomic dynamics. Ten reports have been produced by the project:

This report highlights the main historical trends in the EU’s energy demand and supply and sets them in the context of wider global trendsIt suggests priorities for macro-energy model development to improve analytical support for policy-makers in energy.

This report provides a review of policy-induced energy innovation and technological change and their likely macroeconomic implications for future low-carbon societies in the EU.

This report maps the sources of finance and clean energy investment opportunities offered in the EU. It suggests how best to incorporate such findings in existing macroeconomic models.

This case study examines the resilience of the EU economy to energy supply shocks, and provides comparisons with six other global regions. The case study also presents the results of new econometric analysis of to what extent energy and other production factors, such as capital and labour, can compensate for each other (i.e. their substitutability) across EU sectors.

This technical case study analyses the influence of capacity constraints on the macroeconomic outcome of scenarios requiring significant additional investments compared to business-as-usual conditions.

This technical case study elaborates on current and expected comparative advantages of clean energy EU industries and to test potential benefits for the EU from early action.

This technical case study examines the effect of recent EU policies put into operation to influence the European clean energy finance landscape and facilitate the clean energy transition.

This report introduces a new model for simulating Future Technology Transformations in the European residential heating sector, FTT:Heat. It simulates the uptake and replacement of heating technologies by households in all 28 EU Member States and assesses their macroeconomic implications.

This report applies two macro-sectoral global models to identify potential constraints on EU decarbonisation, the economic implications and potential stylised policies to address such constraints.

This technical report describes how to implement an explicit treatment of finance constraints for decarbonisation (and other) investments in a post-Keynesian macro-sectoral model

Publications