An important activity in RSE is to support the Italian Government in the development of energy policies, focused on promoting, stimulating and implementing the decarbonization of the energy sector.

This activity is performed through the development of energy scenarios, based on national and European targets, as well as on market and technological trends, that outline the potential evolution of the whole energy system.

One of the recent initiatives of the RSE, undertaken in respect of its main activities, is designing, developing, and applying a global General Equilibrium Model for Economy-Energy-Environment (“GEM-E3-ITA”) focused on the Italian context. This is done jointly with E3Modelling, a company with a solid expertise in energy and economic modelling.

The intention is to build and apply a powerful quantitative tool, capable to holistically analyze interactions between the production system, socio-economic agents and the energy sector, in a medium and long-term horizon.

This will facilitate the understanding of the complex issues surrounding decarbonization policies and their impact on the national economy.
The goal of this Report is to provide a comprehensive overview of “GEM-E3-ITA” model, its preliminary characteristics in terms of model structure, key variables and databases. It also describes the relationships between the economic and energy variables as well as novel tools and procedures (e.g. soft link with the Energy Model used in RSE) incorporated in the model.