Intertemporal Computable Equilibrium System (ICES)
Intertemporal Computable Equilibrium System (ICES) is a recursive dynamic general equilibrium model developed to assess the final welfare implication of climate change impacts on world economies, to study mitigation and adaptation policies, and to evaluate trade and public-policy reforms.
ICES was designed to provide a climate change impact assessment beyond the quantification of direct costs, including second and higher-order effects. ICES is based on the GTAP database, and shares the core structure of the GTAP-E model version.
Its general equilibrium structure – in which all markets are interlinked – is tailored to capture and highlight the production and consumption substitution processes at play in the social-economic system as a response to climate shocks. In doing so, the final economic equilibrium determined, takes into account explicitly the ‘autonomous adaptation’ of economic systems.
Key questions addressed:
- What is the economic impact of climate shocks beyond the simple direct costs?
- How effective is a given adaptation or mitigation policy?
Sample data inputs:
- Economic and energy data
Sample quantitative outputs:
- Macroeconomic (GDP, consumption, prices)
Background documents are available here.