AIM/CGE V2.0: Basic feature of the model

Abstract

This chapter documents a main model structure and how to implement scenario assumptions for the analysis of long-term climate mitigation taken by AIM/CGE (Asia-Pacific Integrated Model/Computable General Equilibrium). There are six aspects which are going to be discussed. First, macroeconomy, labor, and population treatment are explained. Second, energy supply sector representation is described. Energy supply sectors are one of the key elements for decarbonizing economic systems. Third, energy demand sectors are discussed. Fourth, agriculture and land use are critically important for stringent climate mitigation policy since large bioenergy implementation combined with carbon capture and storage and afforestation would be thought as measures which enables so-called negative emissions. Fifth, nonenergy-related GHG reduction measures follow. They are mostly related to agricultural sectors. Sixth, we discuss how to add new sectors into the CGE system.