RP0246 – Extension of the ICES CGE model with ecosystems

12/2014
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This methodological report describes the steps and the modelling developments foreseen to include a more explicit ecosystem dimension inside the recursive-dynamic Intertemporal Computable Equilibrium System (ICES) Computable General Equilibrium (CGE) model.
The modelling strategy hinges upon the fact that ecosystems cannot be included in the model directly, but only indirectly, by measuring changes in agents’ demand and/or supply induced by changes in the services ecosystems provide to production/consumption activities. Against this background, different paths are suggested for the model implementation of changes in ecosystem provisioning, regulating, cultural/recreational services.

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