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The Economic Impact of Coal-Fired Versus Nuclear Power Plants: An Application of a General Equilibrium Model

Klaus Conrad and Iris Henseler-Unger

Year: 1986
Volume: Volume 7
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol7-No4-3
View Abstract

In recent years, the literature in the field of general equilibrium modeling has increased. For long-term energy projections, general equilibrium models are more adequate than standard econometrics in evaluating alternative economic policies in a theoretically consistent framework. The well-known structure and economic mechanism of those models makes it easier to analyze structural changes of prices and quantities demanded or supplied for a given data set of an economy, national income accounts figures, and trade balance effects. The dynamic formulation of these models via investment decisions and capital formation also enables an intertemporal interpretation of structural adjustment and growth processes.

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