Production system and representation of economic sectors - C3IAM

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Model Documentation - C3IAM

Corresponding documentation
Previous versions
Model information
Model link
Institution Center for Energy and Environmental Policy Research, Beijing Institute of Technology (CEEP-BIT), China,
Solution concept General equilibrium (closed economy)
Solution method Optimization

C3IAM/GEEPA includes 27 sectors, which are paddy rice, wheat, cereal grains, vegetables and fruit and nuts, oil seeds, sugar cane and sugar beet, plant-based fibers, crops, cattle and sheep and goats and horses, animal products, raw milk, wool and silk-worm cocoons, forestry, fishing, coal, oil, gas, other minerals, other manufacturing, energy-intensive manufacturing, roil, electricity, gas manufacture and distribution, water, construction, transportation service industry and other services (shown in Table 1 below). C3IAM/MR.CEEPA covers 31 provinces and municipalities (without Hong Kong, Macao and Taiwan due to data availability) of China and includes 23 sectors (see Table 2 below).

Table 1 Classification of 27 sectors in C3IAM/GEEPA
        GEEPA 27 sectors GTAP 57 sectors
Description in GTAP database 9
1 pdr pdr Paddy rice
2 wht wht Wheat
3 gro gro Cereal grains, not elsewhere classified (n.e.c.)
4 v_f v_f Vegetables, fruit, nuts
5 osd osd Oil seeds
6 c_b c_b Sugar cane, sugar beet
7 pfb pfb Plant-based fibers
8 ocr ocr Crops n.e.c.
9 ctl ctl Cattle, sheep, goats, horses
10 petr oap Animal products n.e.c.
11 rmk rmk Raw milk
12 wol wol Wool, silk-worm cocoons
13 for frs Forestry
14 fsh fsh Fishing
15 col Coal Coal
16 oil Oil Oil
17 gas Gas Gas
18 omn OtherMin Minerals n.e.c.
19 cmt OtherMnfc Meat: cattle, sheep, goats, horse
20 omt Meat products n.e.c.
21 vol Vegetable oils and fats
22 mil Dairy products
23 pcr Processed rice
24 sgr Sugar
25 ofd Food products n.e.c.
26 b_t Beverages and tobacco products
27 tex Textiles
28 wap Wearing apparel
29 lea Leather products
30 lum Wood products
31 ppp EintMnfc Paper products, publishing
32 p_c Roil Petroleum, coal products
33 crp EintMnfc Chemical, rubber, plastic prods
34 nmm Mineral products n.e.c.
35 i_s Ferrous metals
36 nfm Metals n.e.c.
37 fmp Metal products
38 mvh OtherMnfc Motor vehicles and parts
39 otn Transport equipment n.e.c.
40 ele Electronic equipment
41 ome Machinery and equipment n.e.c.
42 omf Manufactures n.e.c.
43 ely Elec Electricity
44 gdt FuelGas Gas manufacture, distribution
45 wtr Water Water
46 cns Cons Construction
47 trd OthServices Trade
48 otp TransService Transport n.e.c.
49 wtp Sea transport
50 atp Air transport
51 cmn OthServices Communication
52 ofi Financial services n.e.c.
53 isr Insurance
54 obs Business services n.e.c.
55 ros Recreation and other services
56 osg PubAdmin/Defence/Health/Educat
57 dwe Dwellings
Table 2. Sectors in C3IAM/MR.CEEPA
No. Sectors Sectoral Description
1 AGRI Agriculture
2 Coal Mining and Washing of Coal
3 Oil Extraction of Petroleum
4 NatGAS Extraction of Natural Gas
5 OtherMin Mining of Other Ores
6 FoodTob Manufacture of Foods and Tobacco
7 Textile Manufacture of Textile
8 WearApp Manufacture of Textile, Wearing Apparel and Accessories, Leather, Fur, Feather and Related Products and Footwear
9 WoodProd Processing of Timber, Manufacture of Wood, Bamboo, Rattan, Palm, and Straw Products
10 PaperProd Manufacture of Paper and Paper Products
11 Petr Manufacture of refined petroleum products
12 Coking Manufacture of coke
13 Chemistry Manufacture of Raw Chemical Materials and Chemical Products
14 NonMetProd Manufacture of Non-metallic Mineral Products
15 MetalSmelt Smelting and Pressing of Ferrous Metals and Non-ferrous Metals
16 Metalware Manufacture of Metal Products
17 Equipment Manufacture of Machinery
18 ELEC Production and Supply of Electricity and Heat
19 GasPandS Production and Supply of Gas
20 WaterProSup Production and Supply of Water
21 Construction Construction
22 TraStorPost Transport Service
23 OtherService Other Service

In the production module, we assume that each sector produce only one commodity, and the inputs of each sector include labor, capital, energy, and other intermediate inputs. In addition, the production of each sector is represented by a nested constant elasticity of substitute (CES) function, as shown in Equation (1). The CES function is characterized by the flexibility to reflect the alternatives between producers and consumers based on the price and cost. For example, if carbon pricing policies are implemented in the economy, the producers will choose to use lower-carbon energy for its production activities due to increases in the cost of high-carbon energy, thus promotes the economy transition from high-carbon energy to clean energy.


Where  refer to the output of sector  in region , is the input of sector  in region , is shift parameter, is the share parameter,  is the substitution parameter, is the elasticity of substitution.

In C3IAM, the substitution of production functions consists primarily of substitutions between electricity and non-ELEC bundle, energy aggregate and capital, as well as energy-capital aggregate and labor.