The State of the Art in Integrated Energy Economy Models: A Literature Review

This article is aimed at assessing energy–economy models with a focus on their ability to capture the dynamic structural changes of economic systems and the related energy supply chains. A narrative literature review approach was employed, synthesizing relevant peer-reviewed research. The search yielded 229 publications spanning from 2015 to 2024. After applying screening criteria based on methodological transparency, quantitative modelling, and explicit energy–economy integration, 120 articles were retained, from which 23 representative modelling frameworks were selected. The review identifies five key dimensions shaping the realism and applicability of integrated models: geographical and temporal scope, technological detail, modelling approach, and the degree of micro- and macroeconomic realism. Results show a growing adoption of multi-scale modelling and a gradual shift toward hybrid structures combining technological and macroeconomic components. However, significant gaps remain: only 26% of the models move beyond equilibrium assumptions; 17% incorporate behavioural or heterogeneous agents; and almost half rely on exogenous technological change. Moreover, the representation of policy instruments—particularly performance standards, sectoral benchmarks, and public investment mechanisms—remains incomplete across most frameworks. Overall, this analysis highlights the need for more transparent coupling strategies, enhanced behavioural realism, and improved representation of financial and transition risks. These findings inform the methodological development of next-generation models and indicate priority areas for future research aimed at improving the robustness of policy-relevant transition assessments.