Advancing the NOREG 2 Macroeconomic Model for Assessing Norway’s Transition to a Low-Emission Society by 2050 : Expanding the modelling framework

NOREG 2 is a regional computable general equilibrium (SCGE) model for Norway, developed by TØI, Statistics Norway (SSB), Vista Analyse, and Menon Economics. The model enables detailed analyses of regional industrial development and economic adjustment over time. In this project, NOREG 2 has been further developed to provide regional economic analyses of the long-term effects of Norway’s transition to a low-emission society by 2050. Key improvements include explicit modeling of emissions and climate policy instruments, updating the model’s base year to 2022, enhancing foreign trade and regional data, and linking the model to national freight and passenger transport models. These linkages enable consistent analyses of economic, demographic, and transport-related interactions between regions. NOREG 2 is soft-linked to both the freight and passenger transport models, and procedures for iterative analyses within the integrated modeling system have been developed as part of the project.