Applied Dynamic Analysis of the Global Economy (ADAGE) Model
Applied Dynamic Analysis of the Global Economy (ADAGE) is a type of economy-wide model, which examines policy effects as they are spread throughout an economy. ADAGE is a dynamic, multi-region, and multi-sector computable general equilibrium model capable of examining many types of economic, energy, environmental, climate-change mitigation, and trade policies at the international, national, U.S. regional, and U.S. state levels.
With the capacity of modeling all greenhouse gas (GHG) emissions (including emissions from land use change), the marginal abatement cost of GHG emissions, and mitigation options (carbon tax and cap-and-trade), the model is capable of examining the interactions among agriculture, energy, and climate change mitigation, and performing public analysis for food, energy, and environmental issues.
Key questions addressed:
- What is the economic and environmental impact of an energy policy on a specific country or region?
- What are the implications of this energy policy on labor costs, capital, and natural resources?
- Will this policy effect household behaviors?
Sample data inputs
- Economic data from Global Trade Analysis Project (GTAP)
- IMpact analysis for PLANning (IMPLAN)
- Energy data and various growth forecasts
Sample quantitative outputs
- Gross domestic product
- Industry output and changes in prices
- Employment impacts and changes in wage rates
- Capital earnings and real interest rates
- Investment decisions
- Input purchases and changes in production technologies
- Flows of traded goods among regions
- Energy production and consumption
- Fuel and greenhouse gas permit prices