The twin challenges of energy security and climate change have driven an intense modelling activity of long term energy-economy-environment (3E) scenarios over the past decade. As a global consensus on the reality of climate change and on the urgency to act becomes an irreversible trend, policy makers rely heavily on the advice on a balanced path of economic growth.
Besides, early development of energy and environment statistics made it possible to develop computable multisectoral general equilibrium models (CGE-models) with a rigorous description of energy supply and demand, and the interlinkages between economic activity, energy production and use, and emissions to air. These integrated CGE-models have been used for forecasting purposes and numerous analyses of energy and environmental policies during the last two decades. Especially the models have been developed to be suitable for analyzing different economic policy options to deal with the global climate issue as design of optimal carbon tax or carbon quota schemes.
In order to provide policy makers in Taiwan with mathematical insights on mapping out the path of sustainable economic growth, TRI has developed and maintained the CGE models, including TAIGEM, TaiSEND, and TRICE for evaluation of 3E’s related policies.