4. Macro level
GRETCHEN's work package 4 analyzes the impacts of the policy mix on technological change, welfare (economic development and employment), trade and structural change using the global macroeconomic, input-output model GINFORS. This analysis requires the following steps:
- Identify the effects of the policy mix on innovation and hence on technological change.
- Quantify the effects of technological change on the model parameters and variables.
- Analyze the resulting effects on the economy. The first step will be based on the results of the analyses in work packages 1, 2 and 3, where the policy mix is defined and the effects on the micro and meso levels are analyzed.
For the second step, GINFORS will be extended to include endogenous technological change. The renewable power generation sector has to be modeled in more detail, the industrial sectors that are part of the supply chain of renewable power generation technologies have to be identified and the effects of the changing technology have to be endogenized.
The subsequent policy scenario analysis of step three will indicate the possible effects of the policy mix on welfare, trade and structural change.
This work package will be accomplished by GWS.