FLEXIBILITY IN POLICY SIMULATION - CIMS is a technologically detailed model, and represents every major sector of the economy that consumes energy and produces greenhouse gas emissions. CIMS represents approximately 3,000 individual technologies, and forecasts how businesses and consumers will alter their technology acquisitions in response to different policies. The resulting technology mix is used to estimate energy consumption and emissions of greenhouse gases and criteria air contaminants. The technological detail in CIMS enables us to analyze a large range of policies, such as emissions charges, subsidies, technology specific regulations. We can also forecast how policies are likely to interact when they are implemented together in policy packages.

REALISTIC FORECASTS – We use CIMS to forecast the likely responses of businesses and households to different policies, rather than prescribe the responses businesses and consumers could take to meet an environmental constraint. Therefore, CIMS is more useful as a policy analysis tool. We aim to provide a realistic forecast by employing behavioural parameters that have been empirically estimated from market research and historic data.

INCORPORATION OF EQUILIBRIUM FORECASTS – CIMS integrates all sectors of the economy in an equilibrium framework. CIMS attains equilibrium in energy markets by adjusting energy prices until the supply and demand for energy are balanced. CIMS also simulates how the output of sectors may change in response to a policy.

ECONOMIC COST ESTIMATION – Using the results from CIMS, we can estimate the likely economic impacts of environmental policies on gross provincial product, employment and household welfare.

ACCOUNTING FOR UNCERTAINTY – Many input assumptions into modelling the energy-economy system are highly uncertain. Using CIMS, we can test the results’ sensitivity to key areas of uncertainty by changing the input assumptions.

DETAILED RESULTS – We can provide detailed results at a sectoral level. For example, we can show how the energy or greenhouse gas intensity from residential space heating is likely to change as a result of a policy.