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

IMF Working Papers, December 22, 2023

Source details

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

Presents GMMET, the Global Macroeconomic Model for the Energy Transition.
Purpose: analyze the short- and medium-term macroeconomic impact of curbing greenhouse gas (GHG) emissions.
Model type: large-scale, dynamic, non-linear, microfounded multicountry model.
Paper authors: Benjamin Carton, Christopher Evans, Dirk V Muir, Simon Voigts.
Publication date: December 22, 2023.

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.
Granular modelling features:
- Electricity generation: captures the intermittency of renewables.
- Transportation: captures network externalities between charging stations and electric vehicle adoption.
- Fossil fuel mining: replicates estimated supply elasticities at various time horizons.
Model properties documented include structure, data sources, and model properties.

Rich set of policy tools represented in the model:
- Taxation of GHG emissions.
- Various subsidies.
- Regulations.
Intended use: evaluate short- and medium-term macroeconomic impacts of climate mitigation policies and energy-transition interventions.

Subject areas: 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.