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Economic Models and Integrated Assessment

We develop advanced models that represent economic mechanisms and social dynamics. We seamlessly integrate these with models and assessments of health, environmental, ecosystem, and climate impacts.

By modelling socio-economic activities and their interactions with the environment, NILU contributes to the development of resilient, adaptive, and sustainable human-environment systems.

Our expertise

  • We use Input-Output (IO), Environmentally Extended IO (EEIO), and Computable General Equilibrium (CGE) models to better represent and understand value chains and associated risks, consumption dynamics, and public policies both in linear and circular economies.
  • We rely on official statistics, remote sensing, satellite imagery, crowd-sourced data, and advanced econometric and machine learning techniques for model calibration and validation.
  • We couple socio-economic models with other approaches such as MFA, LCA, integrated assessment (IAM) and earth system models (ESM) to support the design and implementation of health and environmental policies.
  • We use behaviourally sound microeconomic modelling to design and optimize economic mechanisms (e.g., tariffs, subsides) supporting the green transition and climate adaptation.

Typical examples of services

  • Cost-benefit analyses integrating socio-economic and environmental impacts.
  • Policy advice on circular economy strategies.
  • Ultra-fine-scaled assessments of socio-economic impacts and of their propagation through space, value chains, and time.
  • Analyses of macroeconomic impacts and (public) financial sustainability of health and environmental policies.
  • Mechanism design to support the integration and diffusion of renewable energies.
  • Development of decision support systems integrating socio-economic and environmental impacts.