NEMESIS is a sectoral detailed macroeconometric model for the EU. It is a system of economic models for every Member State (as well as the UK, Norway, and Iceland), used to assess a wide spectrum of policies, including fiscal, budgetary, labour market, research and innovation, energy, climate, and environment. NEMESIS is typically used as a consolidated framework to assess the socioeconomic impact of EU policies on top of business-as usual or alternative scenarios. The mechanisms of the model are based on behavioural equations for four categories of ‘representative’ firms (per sector), households, governments, and the rest of world, ndividualizi based on econometrics or calibrations from the econometric literature.
Acknowledging the global nature of aspects related to climate change and action, as well as the need to enhance global responses and consider interactions both within and (of other economies) with the EU, DIAMOND will develop and use an open, global implementation of NEMESIS. It will, therefore, address a critical research gap, producing NEMESIS-World, the first open-access, global, large-scale, macro-sectoral model. This entails individualizing the largest economies (and GHG emitters), energy supply sectors, and transport activities, with the selection of datasets reflecting the ideal trade-off between coverage, detail, relation to official definitions, and need for updates.