About the Model
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CO2 Emissions an the Economy

This model is a simplified version of a large-scale model used by an international consortium of scientist to study the effects of governmental intervention on carbon emissions.

In the present version you can specify whether the government collects carbon taxes and if so, if the money earned through them is used to finance research and development of carbon-reduction techniques.

The carbon tax is imposed proportionally to the carbon-intensity of a company’s production process. Thus it forces companies to decide whether they want to produce cheap (i.e. carbon intensive) and pay high taxes or to invest in CO2-reduction technology – and pay less taxes and have a better brand image. The model results show various economic indicators such as the normalized GDP, unemployment rate, distribution of wealth, etc.