Trésor-Eco
The Green Macroeconomic Model ThreeME Expands the Tools Used to Assess the French Treasury’s Climate Policies
Since 2023, the French Treasury has used the macro-environmental model ThreeME, which was co-developed by the ADEME and the OFCE. The model can be used to evaluate the economic impact of climate and energy policies, such as household investment incentives for housing retrofitting and vehicle electrification. The French Treasury, with the OFCE, publishes a shock scenario logbook setting out the economic effects and the emissions of alternate scenarios.
Since 2023, the French Treasury has used the macro-environmental model ThreeME (Multi-sector Macroeconomic Model for the Evaluation of Environmental and Energy policy), developed by the French Economic Observatory (OFCE) and the Environment and Energy Management Agency (ADEME). This model rounds off the French Treasury’s suite of economic and climate policy evaluation tools, combining an in-depth approach involving energy systems which is broken down by sector, with macroeconomic feedback effects factored in.
This model evaluates in particular the impact of climate policies, whether at the economy or sector level, such as incentives for households to make green investments in thermal retrofitting work on their homes and electrification of their passenger cars.
The model provides a great deal of flexibility in its application as it can be used to adjust, based on specific needs, the modelling of the following factors: the number of sectors and goods modelled (particularly energy products), the activation of so-called technical-economic modules for a more in-depth modelling of housing investment and vehicle purchase decisions made by households, and the international environment.
In collaboration with the OFCE, the French Treasury developed a shock scenario logbook (cahier de variantes). This logbook compares in particular the effect of standard macroeconomic shocks modelled using ThreeME and Mésange (a model developed by INSEE and the French Treasury) and details a set of shocks that only ThreeME can model, primarily relating to sector-specific elements.
