Second Generation Model (SGM)

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Model Name and Version: Second Generation Model (2002a)  

Model Type: Set of 14 multi-sector regional CGE models.  Regional models may be run independently or as a system for international trade in emissions permits.  Regional models are dynamic-recursive, with a time frame of 1990 through 2050 in five-year time steps.

Developer/Home Institution: Pacific Northwest National Laboratory/Joint Global Change Research Institute at the University of Maryland.  Contacts: Ron Sands ( or Hugh Pitcher (

Sector Detail:  Agriculture (primary agriculture, food processing); services; energy production (oil, natural gas, coal); energy transformation (coke, electricity, refined petroleum, gas distribution); energy-intensive industries (paper and pulp, chemicals, cement, iron and steel, non-ferrous metals, other industry); transportation (passenger transport, freight transport)

Regional Detail:  14 regions (United States, Canada, Mexico, Western Europe, Eastern Europe, former Soviet Union, China, India, Brazil, Japan, South Korea, Australia/New Zealand, Middle East, Rest of World)

Technology Detail: Each production process is represented by a CES or Leontief production function.  Electricity sector is broken into subsectors (oil-fired, gas-fired, coal-fired, hydro and renewables, nuclear).

Special Features: Many of the regional models are developed jointly with analysts from that region.  Capital stock is segmented into five-year vintages by sector; elasticity of substitution between inputs is greater for new capital than for old capital vintages.  Hybrid input-output tables are constructed for consistency with base-year energy balances.

SGM User Guide:
SGM Model Code:

Sands, R.D., T.Y. Jung, and S. Jo.  2002.  “Second Generation Model for Korea,” in Energy and Environment Models for Korea, H. Lee and T.Y. Jung (eds.).  in press.  PNNL-SA-33775.

MacCracken, C.N., J.A. Edmonds, S.H. Kim, and R.D. Sands.  1999.  “The Economics of the Kyoto Protocol,” in The Costs of the Kyoto Protocol: A Multi-Model Evaluation, special issue of The Energy Journal, John Weyant (ed.).

Edmonds, J.A., H.M. Pitcher, D. Barns, R. Baron and M.A. Wise.  1993.  “Modeling Future Greenhouse Gas Emissions: The Second Generation Model Description,” in Modelling Global Change, Lawrence R. Klein and Fu-chen Lo, eds.  United Nations University Press, New York.