ABSTRACT
Throughout this book, computer modeling is used to illustrate the effectiveness of different public policies. Specifically, we draw upon results from the E3ME macro-econometric model and the FTT (Future Technology Transformations) energy technology bottom-up sub-models that are linked to E3ME. This chapter introduces the E3ME model and provides a set of references for further reading.
The modeling approach in E3ME is compared with the more common Computable General Equilibrium (CGE) approach that is often used for economic analysis. We discuss the key underlying assumptions relating to human behavior and the operation of economic markets, and show how they may impact on the results of the analysis. Finally, we introduce the FTT family of models, which is used extensively in the second part of the book.
