Capital and labour markets - GRACE

Economic growth is driven by investments, population growth, technological change and the availability of natural resources. Labour force growth is exogenously determined in the model and calibrated based on some population projection (e.g., World Bank). In the reference scenario, the real Gross Domestic Product (GDP) is exogenous and calibrated based on some economic growth projection (e.g., World Bank or OECD) by making labour productivity endogenous, i.e., a labour-augmenting technical change. Alternatively, the economic growth in the reference scenario could be calibrated by making total factor productivity endogenous (i.e., labour and capital). In policy simulations, factor endowment is scaled by the calibrated parameters of factor productivity and real GDP is endogenously determined within the model. Following the MIT EPPA6 model , we assume an annual autonomous energy efficiency improvement of 1.0% for non-electric sectors and 0.3% for the electric sector.

Note: The documentation of GRACE is 'under review' and is not yet 'published'!

Model Documentation - GRACE
Model scope and methods - GRACE Model concept, solver and details - GRACE Temporal dimension - GRACE Spatial dimension - GRACE Policy - GRACE Socio-economic drivers - GRACE Population - GRACE Economic activity - GRACE Macro-economy - GRACE Production system and representation of economic sectors - GRACE Capital and labour markets - GRACE Monetary instruments - GRACE Trade - GRACE Technological change - GRACE Energy - GRACE Energy resource endowments - GRACE Fossil energy resources - GRACE Uranium and other fissile resources - GRACE Bioenergy - GRACE Non-biomass renewables - GRACE Energy conversion - GRACE Electricity - GRACE Heat - GRACE Gaseous fuels - GRACE Liquid fuels - GRACE Solid fuels - GRACE Grid, pipelines and other infrastructure - GRACE Energy end-use - GRACE Transport - GRACE Residential and commercial sectors - GRACE Industrial sector - GRACE Other end-use - GRACE Energy demand - GRACE Technological change in energy - GRACE Land-use - GRACE Agriculture - GRACE Forestry - GRACE Land-use change - GRACE Bioenergy land-use - GRACE Other land-use - GRACE Agricultural demand - GRACE Technological change in land-use - GRACE Emissions - GRACE GHGs - GRACE Pollutants and non-GHG forcing agents - GRACE Carbon dioxide removal (CDR) options - GRACE Climate - GRACE Modelling of climate indicators - GRACE Climate damages, temperature changes - GRACE Non-climate sustainability dimension - GRACE Air pollution and health - GRACE Water - GRACE Other materials - GRACE Other sustainability dimensions - GRACE Appendices - GRACE Mathematical model description - GRACE Data - GRACE References - GRACE
Corresponding documentation
AIM-Hub BLUES C3IAM COFFEE-TEA DNE21+ GEM-E3 GRACE IMACLIM PROMETHEUS
Previous versions
No previous version available
Model information
Model link	https://sites.google.com/view/taoyuanwei/home/grace
Institution	Center for International Climate Research (CICERO), Norway, https://cicero.oslo.no/en.
Solution concept	General equilibrium (closed economy)
Solution method	SimulationRecursive dynamic solution method
Anticipation