gTech seeks to be “descriptive”, meaning that it represents how firms and consumers make investment decisions in the real world. Unlike models that are prescriptive (e.g. solving to minimize financial costs), gTech accounts for a wider variety of factors that influence decisions regarding technology acquisition and use. These factors include a preference for familiar technologies, a sensitivity to the quality of the end-use service provided, an aversion to large up-front costs and a lack of complete information.
As a general equilibrium model, gTech balances supply and demand for all energy and non-energy commodities. This feature ensures that we capture the full impact of policies across all sectors of the economy. For example, a policy requiring the adoption of renewable electricity generation is likely to increase the price for electricity, which will in turn influence firm and consumer choices related to technologies that consume electricity. In addition, changes to household spending on electricity will influence household spending on other goods and services.