Modelling the EU ETS system in GreenREFORM

07-02-2022

In this note, I will discuss how to model the EU ETS system in GreenREFORM.

Abstract

In the first section, I discuss how the EU ETS system appears in the national accounts, which GreenREFORM is build on and which accounting principles we must respect. In light of this, in the second section, I discuss how to model firm behaviour. The note is expected to be expanded with sections discussing modelling government finances and forecasting the allocation of free allowances.