Policy - COFFEE-TEA

The TEA model represents the the market choices of agents under resource allocation constraints. The model capture industry-to-industry linkages (indirect effects), highlighting effects that are not usually intuitive. Such models can support policies, evaluating their costs and beneffits. The model is a standard tool used in the analysis of aggregate welfare and measurement of policy impacts through multiple markets, including taxes, subsidies, quotas or transfer instruments (Wing, 2004). Thus, the TEA model can assess different types of policies, such as energy, climate, industrial, land use, agriculture or transport sector policies.