The Low Carbon Simulator is a dynamic cross-sectoral model for simulating the uptake of emissions abatement technologies, building long-term roadmaps for cost-optimised emissions reductions strategies and assessing the associated implications for the economy. This model takes a scalable approach to emissions across all major sectors while accounting for region specific economic, industrial, resource and policy conditions.
The Low Carbon Simulator produces outputs including marginal abatement cost (MAC) curves, emissions wedge diagrams, dynamic cost curves (accounting for domestic and international learning phenomenon) as well as national spending trajectories. The model makes use of Monte Carlo methods to accommodate statistical uncertainty and ranges of expert opinions, providing a rational estimate of confidence in the forecasts and roadmaps it produces.
With the ability to account for industry and sector specific drivers, constraints and interdependencies, the Low Carbon Simulator accurately forecasts the role different abatement measures and technologies will play, by region, during the low carbon transition. This makes the Low Carbon Simulator an ideal tool for identifying:
- The most favourably positioned low carbon industries and abatement options.
- The optimal low carbon investment strategy, portfolio width and acquisition timing for individual businesses, investors and policy makers.
- The impact, implications and efficacy of government climate change policies.
- Opportunities and risks created by changes to government policies, business practices and economic conditions. This also includes the ability to test for unanticipated, high-impact Black Swan Events.
- Business or region specific impacts and opportunities in the context of global and national forces, leveraged against the specific business and resource conditions of that region.
For further details on the capabilities and advantages of the Low Carbon Simulator please download the accompanying briefing or contact us to discuss how the Low Carbon Simulator can be applied to your particular needs.