IAEE Members and subscribers to The Energy Journal: Please log in to access the full text article or receive discounted pricing for this article.

Promoting Renewable Energy in Europe: A Hybrid Computable General Equilibrium Approach

We illustrate the use of a large-scale computable general equilibrium model to investigate the economic and environmental effects of renewable energy promotion within the European Union. Our hybrid model incorporates the technological explicitness of bottom-up energy system models for the electricity sector while production possibilities in other sectors are described at an aggregate level through top-down constant-elasticities-of-substitution (transformation) functions. The discrete activity analysis of technology options within conventional top-down computable general equilibrium models is possible when adopting the so-called mixed complementarity problem approach Ð a flexible mathematical representation of market equilibrium conditions which accommodates weak inequalities and complementary slackness.

Purchase ( $25 )

Energy Specializations: Energy Investment and Finance – Corporate Strategy; Renewables – R&D and Emerging Technologies; Renewables – Policy and Regulation

JEL Codes: Q41: Energy: Demand and Supply; Prices, Q42: Alternative Energy Sources

Keywords: Hybrid CGE model, EU, Renewable energy, Climate policy

DOI: 10.5547/ISSN0195-6574-EJ-VolSI2006-NoSI2-7

Published in Hybrid Modeling, Special Issue #2 of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.


© 2024 International Association for Energy Economics | Privacy Policy | Return Policy