Modelling Energy-Environment-Economy Interdependencies: A Comparative Analysis of Ten E3 Models

Abstract

Understanding the interdependencies between energy, environmental issues and economic issues is of fundamental importance in developing appropriate policies for decarbonising the economy. The relationships between these three factors are, however, complex and different approaches have been taken in analysing the key relationships between these factors in order to assess the implications. This paper will assess one type of approach, examining economic or econometric models that include indexes for energy, environment and economic issues, i.e. E3 models. The objective of the paper is to assess some of the key features of these models, as identified by the research groups in their literature, as an introduction to the variety of strategies available to, and used by, E3 modelling groups.