Textbox 1: About the ICMM project and the ICMM Network
The Integrating Climate in Macroeconomic Modelling (ICMM) project started in 2022 with the intention of strengthening Nordic cooperation between experts and practitioners designing, working and using macroeconomic models for policy design.
The main objectives of the project were:
The ICMM project established an international network composed by 30 experts working on the integration of climate and finance policies in each and all of the Nordic countries. The project hosted four Technical workshops (focused on the technical aspects of various Nordic models) and two Policy workshops (debating the models’ policy impacts). Comprehensively, the ICMM events gathered more than 100 single participants.
More information: Integrating climate into macroeconomic modelling (ICMM) | Nordregio
Type of Model
Type of Link
Summary of key features
59 sectors plus 27 types of energy and 14 emissions in physical quantities. It has several fully integrated submodules for specific sectors and features that can be turned on/off as needed and can be used independently of one another.
Collaboration between the Centre of Policy Studies in Melbourne and Finnish researcher
Dynamic AGE model
100 industries and 150 commodities, especially focusing on energy data.
The model has a regional extension (at NUTS 3 level), and it covers households by age, income decile and by socioeconomic group.
Hard link (previous versions tested soft links)
It represents the Norwegian economy, with 46 producing sectors and various household and public consumption sectors.
National Institute of Economic Research (NIER) Konjunkturinstitutet
It specifies firms in 35 production sectors, together producing around 43 different products (this can vary year to year). In the last version (4) the Model disaggregated the road transport substantially (specification of 6+ vehicles and 5+ fuels). It also specifies 6 household types differentiated by income (low/high) and residential area (rural/small, urban/large) to study income distribution
Initiated by The Energy Agreement and embedded in the Danish Energy Agency
The IntERACT model setup integrates a general equilibrium model with a technical energy system model TIMES-DK.
Nordic Council of Ministers (Nordregio)
Model developed for a Nordregio project- Ensuring inclusive economic growth in the transition to a green economy (EnIGG) -to study the distributional effects of climate policies in the Nordic countries. Five Nordic countries plus Rest of Europe (RoE), 26 (NUTS2) regions within the Nordic countries, 53 industries, 39 occupations, eight wage-bands, and 30 household types (for Denmark, Finland and Sweden)