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Skip to 0 minutes and 7 secondsTogether, we've come to the end of this course. We hope you learned a lot. Let us recap. This was a course about modeling. And you learned that modeling is much more than just a model. There's a whole process ranging from problem to interpretation and back again. The actual model is just one part of that process chain. You learned that there are different types of models and what they are used for. In detail, we looked at two types, theoretical models that help to explain aspects of the real world, and numerical models that try to simulate the real world. We looked at the similarities and differences. You learned how to design, solve, and interpret your model.

Skip to 0 minutes and 57 secondsAnd you learned that you should put everything in context. In relation to environmental policy, we discussed different types of models and how to set up models that describe policies and cases where we have several market failures. We used a simple example of emissions and market power, but the main ideas underlying this example are at work at the most environmental economic models used today. We have analysed energy systems and learned how to build model representations to develop future scenarios. Regardless what question you have, if it's a 100% green energy world or world full of e-mobility. You can design a model to answer exactly that question. In your assignment, you developed your own future. And thereby became a modern fortune teller.

Skip to 1 minute and 51 secondsDid you like your future? What would we now need to do to make your future a reality. You learned that economic models are indeed useful. They help us to understand our world a bit better and assist us in shaping our future.

Conclusion

You learned:

  • Modeling is more than a model. It’s a process.
  • There are different types of models and what they are used for.
  • To design, solve, and interpret a model.
  • Economic models are indeed useful.

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This video is from the free online course:

Exploring Possible Futures: Modeling in Environmental and Energy Economics

University of Basel