- Joint Program Technical Note
The MIT Emissions Prediction and Policy Analysis (EPPA) model is a recursive-dynamic multi-regional general equilibrium model of the world economy, which is built on the GTAP5 dataset and additional data for the greenhouse gas and urban gas emissions. The GTAP5 dataset aggregates all the different types of petroleum products, from transportation fuels to refinery residues, in the same "refined oil" commodity. We augment the GTAP supply, demand, and trade data in order to disaggregate the refined oil commodity into six different categories of petroleum products, each with its specific uses and associated emission factors. We then expand the EPPA model accordingly, and improve its representation of the oil industry by introducing new upstream and downstream oil technologies and taking into account the changes in the crude mix. This work opens the door to future in-depth analyses of how supply and demand for refined products could be affected by climate policy.