Technological change - C3IAM

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Model Documentation - C3IAM

Corresponding documentation
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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

Technological change is an important source of economic growth. In C3IAM, in addition to the exogenous augmentation of the supplies of labor and natural resources, energy consumption per unit of output decreases externally over time (the so-called autonomous energy efficiency improvement index, AEEI), which is a heuristic representation of non-price-driven changes in energy use over time[1].

Technological change in electricity sector also has been specified with two advanced generation technologies: natural gas combined cycle technology with carbon capture and sequestration (NGCC-CCS) and integrated coal gasification technology with carbon capture and sequestration (IGCC-CCS). If these technologies are economically competitive with existing technologies, they will endogenously enter.

Technological change in agricultural sector plays an important role for meeting future demands of various agricultural products. The endogenous implementation of agricultural technological change is based on production costs and the impact of R&D investment on yield improvement which evolves with agricultural land use intensity. Land use intensity descripts the degree of yield amplification caused by human activities and the value in base year is estimated by empirical regress analysis. Investing technological changes not only enhance crop yield but only increase land use intensity, which raise costs for further yield increases in turn.


  1. Sergey Paltsev, John M Reilly, Henry D Jacoby, Richard S Eckaus, James R McFarland, Marcus C Sarofim, Malcolm O Asadoorian, Mustafa HM Babiker, 2005. The MIT emissions prediction and policy analysis (EPPA) model: version 4. MIT Joint Program on the Science and Policy of Global Change.