Response Measures - Modelling


Name and contact of the organization

Cambridge Econometrics

Cambridge Econometrics, Covent Garden, Cambridge, CB1 2HS, UK

Fax: ++44 (0)1223 464378

Email (for E3ME): 
Hector Pollitt (Project Manager - European Modelling),
Unnada Chewpreecha (Economist),

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

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.


EU27, Norway and Switzerland

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.  (

pETRE - This project looked at the competitiveness effects of environmental tax reform in the UK, Germany and the rest of Europe. E3ME was used in tandem with the GINFORS model to analyse the economic, social and environmental impacts of future environmental tax reform (

Other E3ME projects (

E3ME publications (

Organization's main area of research


Other projects / reseach