Economic activity - C3IAM
|Center for Energy and Environmental Policy Research, Beijing Institute of Technology (CEEP-BIT), China, http://ceep.bit.edu.cn/english/.
|General equilibrium (closed economy)
In addition to population, economic development has a strong impact on the challenges to mitigation and adaptation. The future macro-economic assumption also causes changes in the supply and demand of goods. In C3IAM, there are two ways of treatment of macroeconomic assumption differentiating between baseline and mitigation scenarios. In baseline scenario, GDP is assumed as exogenous, while total factor productivity (TFP) is assumed as endogenous. Therefore, the GDP assumption is used to calibrate the TFP. In mitigation scenario, we set the TFP values which is calibrated in baseline scenarios as exogenous.