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E3ME is a global sectoral econometric model used to analyze long-term energy and environment interactions within the global economy and to assess short- and long-term impacts of climate change policy.

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This tool is included in the Development Impacts Assessment (DIA) Toolkit from the LEDS Global Partnership.


E3ME examines how the economic system changes over time, providing year-by-year projections of these changes into the future without assuming the economy reaches equilibrium. E3ME is therefore not a General Equilibrium Model, which only shows how real resources are re-allocated between economic activities after the economy has reached equilibrium following introduction of a policy. E3ME can model the gradual uptake of new technologies, thus providing a better understanding of the time it will take for the economy to accommodate these technologies and reduce the emissions of greenhouse gases and other pollutants.

When to Use This Tool

This tool is most useful for development impacts assessments focused on:

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Learn more about the topics for assessing the impacts of low-emission development strategies (LEDS).

Key Outputs

A year-by-year estimate of economic performance and emissions, which allows the development of historical reconstructions of how emissions have changed over time in the past, and explains these changes. It also projects to the future to assess how these emissions might be affected by different policies and pathways of technological change.

How to Use This Tool

Training Available
Software platform IDIOM (International Dynamic Input-Output)

Level of Expertise

Key Inputs

Economic and energy data

Case Studies

Examples of how E3MG has helped people assessing the impacts of low-emission development strategies in countries and regions:

Major Reports with Results Based on E3ME Energy and Climate Policies available at http://www.camecon.com/EnergyEnvironment/EnergyEnvironmentEurope/ModellingCapability/E3ME/publications.aspx

"E3MG is a sectoral econometric model for the world that has been developed with the explicit intention of analysing long-term energy and environment interactions within the global economy and assessing short and long-term impacts of climate change policy. E3MG produces comprehensive annual forecasts to the year 2020, and long-term forecasts to the year 2100 and includes a set of fully endogenous technical progress indicators. The E3MG model provides a single-model framework in which detailed industry analysis is consistent with macro analysis; the key indicators, including world trade and technical progress, are modelled separately for each sector and region, and are aggregated to determine global impacts.

E3MG provides a highly disaggregated breakdown of economic activity (ESA-95 consistent) and energy use, based around the following model classifications: 20 World regions, including explicit treatment of the US, Japan, India, China, Mexico, Brazil and the four largest EU economies 42 Industrial sectors based on the NACE classification, including 16 service sectors and disaggregation of the energy sectors 28 Consumer spending categories 12 different fuel types, and 19 separate fuel user groups 14 atmospheric emissions"


  1.  "E3MG official website"