REMES is a Computable General Equilibrium model that represents the Norwegian economy with a particular focus on the energy system. REMES is used to study the effects of macroeconomic policies on the Norwegian economy.
The model splits the national economy into five regions, which coincide with the five Norwegian energy market zonal prices. It includes 36 production sectors and 32 products and considers demand from households, investors and government alongside international imports and exports. . Policies are modeled as shocks, which influence the economy by means of taxes or subsidies. Effects are considered on prices, activity levels exports, imports and technology changes. The structural interconnections between the main building blocks in the model are displayed in Figure 1, where the arrows illustrate the payments direction between the elements of the model.
REMES model main elements
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