MERGE – Model for Estimating the Regional and Global Effects of Greenhouse Gas Reductions

MERGE was designed to estimate the regional and global economic impacts of greenhouse gas reductions. The model is sufficiently to flexible to explore alternative views on a wide range of issues, such as: costs of abatement, damages from climate change, valuation and discounting. MERGE is made up of four submodels:

1. domestic and international economy;
2. energy-related emissions of greenhouse gases;
3. non-energy emissions of GHG’s;
4. global climate change – market and non-market damages

The model is relevant in assessing the socio-economic impacts of the climate change mitigation policies. In particular, this model can be used to estimate the economic cost and benefits of such policies.