We use gTech to simulate how all sectors of the economy may evolve under different economic conditions. This tool allows us to provide insight into how energy and climate policies affect a number of variables, such as:
- Economic activity (e.g., gross domestic product)
- Energy consumption
- Greenhouse gas emissions
- Technology adoption
- Trade of goods and services between regions
- The competitiveness of different sectors
Each sector is characterized by what it produces (e.g. electricity) and the inputs required in production (i.e., capital, labour, energy and materials). Commodities that are produced can then be sold to other producers (as intermediate inputs), to households (the final consumers of goods produced in the economy), or to other regions and the rest of the world as exports. Commodities can also be imported from other regions or the rest of the world.