Response measures models - E3ME


Name and contact of the organization

Cambridge Econometrics

Covent Garden, Cambridge, CB1 2HS, UK

Tel: ++44 (0)1223 460760

Description of model

The econometric E3ME model has been built as a framework for assessing energy-environment-economy issues and policies.  Its close links between energy demand and economic indicators make it well-suited to assessing the social and economic impacts of response measures.  In particular, additional taxes or the removal of subsidies can be assessed with the model.  E3ME can also be used to examine the impacts of efficiency measures, including rebound effects.

In the past the model has mainly been used for:

  1. general macro and sectoral economic analysis;

  2. more focused analysis of policies relating to greenhouse gas mitigation;

  3. assessing incentives for industrial energy efficiency;

  4. analysing sustainable household consumption – for example to assess impacts of raw material taxation on household consumption patterns and other economic variables.

Recently the model has been used to contribute to several official policy assessments in Europe, including the Energy Taxation Directive, the Energy Efficiency Directive and the 2030 environmental targets. It is also frequently being applied at national level, both within and outside Europe.

Particular relevance

E3ME is relevant  in assessing the socio-economic impacts of the climate change mitigation policies,  for example the effect these policies have on specific industries or on income distribution. E3ME can be particularly useful in analysing changes to policies regarding taxation, subsidies and efficiency improvements of  activities relating to fossil fuels.


Global coverage. 53 regions.

Model applications

COMETR assessed the economic and environmental impacts of European environmental tax reforms carried out in the 1990s. E3ME was used to examine both the short and long-term effects of these reforms, with particular emphasis on competitiveness. (

The CLIMACAP project provided improved modelling capacity and policy formulation to support the development and implementation of low carbon development strategies in Latin America. The project integrated model improvement, capacity building and policy strategy support into a single coherent process.

Other E3ME projects (

E3ME publications (

Organization's main area of research


Other projects / reseach

E3ME Asia - The main outcome of this project is the book E3 Modelling for a Sustainable Low Carbon Economy in East Asia, which will be published in 2015. For this purpose, a previous version of the E3ME model is expanded to provide detailed coverage of China, Japan, Korea and Taiwan.