Work Package 3: Comprehensive Model-based Analysis of Policy Scenarios


Work Package 3 consists of three tasks:

  1. Simulation of decarbonisation policy scenarios
  2. Simulation of combined policy scenarios comprising decarbonisation and compensation policies
  3. Sensitivity analysis

Simulation of decarbonisation policy scenarios

The decarbonisation policy scenarios developed in WP1 will be simulated, and the results will be assessed with respect to distributional effects of different policies on the different household types. We will assess the results on the impact of policy measures for different household types and with a focus on vulnerable groups in terms of e.g. decreasing consumption opportunities or reduced employment opportunities. In addition, the macroeconomic and emission impacts of the policy instruments will be analysed.

Simulation of combined policy scenarios comprising decarbonisation and compensation policies

A first set of combined decarbonisation and compensation policy scenarios will be run to analyse whether the social compensation measures developed in WP1 are suitable to mitigate potential negative distributional impacts caused by the decarbonisation policies found in Task 3.3. The impact of policies and differences between the different scenarios will be discussed internally as well as with the scientific advisory board.

Based on the insights derived from the first set of scenarios, a second set of policy scenarios will be developed. The aim of the task is to provide a set of robust scenarios which are relevant in the policy discussion. Results will be analysed, disaggregated for different household types. The aggregate economic effects (i.e. changes in GDP, value added, and employment) as well as changes in greenhouse gas emissions for 2030 and 2050 will be reported and results will be prepared for WP4.

Sensitivity analysis

The model simulations will be scrutinised by a sensitivity analysis of the most important policy parameters such as subsidy and taxation levels or different levels of technology standards as well as the impact of a low energy efficiency performance scenario.

Last update: November 2021