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Domestic Energy: A Forgotten Factor in Simple Energy-Economy Models

Stephen C. Peck and John L. Solow

Year: 1982
Volume: Volume 3
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol3-No3-3
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Abstract:
This paper focuses on the impacts of changes in world energy prices on an energy-importing economy such as the United States. To this end, we use a simple energy-economy model developed by Sweeney [7] and having affinities to the earlier work of Hogan and Manne [5]. This model takes explicit account of the fact that the U.S. energy sector is linked to the rest of the world and that the United States is a net importer of energy. Comparative static analysis of this model enables us to pinpoint the most important parameters in the determination of relative price effects on the domestic economy. We show that the presence of energy consumption taxes and energy production subsidies does not affect the impacts of changes in world energy prices on national output.



Combining Top-Down and Bottom-Up Approaches to Energy-Economy Modeling Using Discrete Choice Methods

Nic Rivers and Mark Jaccard

Year: 2005
Volume: Volume 26
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol26-No1-4
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Abstract:
Recently, hybrid models of the energy-economy have been developed with the objective of combining the strengths of the traditional top-down and bottom-up approaches by simulating consumer and firm behavior at the technological level. We explore here the application of discrete choice research and modeling to the empirical estimation of key behavioral parameters representing technology choice in hybrid models. We estimate a discrete choice model of the industrial steam generation technology decision from a survey of 259 industrial firms in Canada. The results provide behavioral parameters for the CIMS energy-economy model. We then conduct a policy analysis and show the relative effects of an information program, technology subsidy, and carbon dioxide tax on the uptake of alternative industrial steam generation technologies, including boilers and cogeneration systems. We also show how empirically derived estimates of parameter uncertainty can be propagated through the model to provide uncertainty estimates for major model outputs.



Experiments with a Hybrid CGE-MARKAL Model

Andreas Schafer and Henry D. Jacoby

Year: 2006
Volume: Hybrid Modeling
Number: Special Issue #2
DOI: 10.5547/ISSN0195-6574-EJ-VolSI2006-NoSI2-9
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Abstract:
This paper summarizes the main features of a linked CGE-MARKAL model system capable of simulating the macro-level economy and micro-level technology detail of the transport sector. Emphasis is given to issues of calibration of such a hybrid system, with references provided to already published papers based on this research for coverage of other details.



Overview of EMF 24 Policy Scenarios

Allen A. Fawcett, Leon C. Clarke, Sebastian Rausch, and John P. Weyant

Year: 2014
Volume: Volume 35
Number: Special Issue
DOI: 10.5547/01956574.35.SI1.3
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Abstract:
The Energy Modeling Forum 24 study included a set of policy scenarios designed to compare economy wide market-based and sectoral regulatory approaches of potential U.S. climate policy. Models from seven teams participated in this part of the study assessing economy-wide cap-and-trade climate policy and sectoral policies in the transportation and electric sector in terms of potential greenhouse gas emissions reductions, economic cost, and energy systems implications. This paper presents an overview of the results from the U.S. policy scenarios, and provides insights into the comparison of results from the participating models. In particular, various metrics were used to compare the model results including allowance price, the efficient frontier, consumption loss, GDP loss, and equivalent variation. We find that the choice of economic metric is an important factor in the comparison of model results. Among the insights, we note that the carbon price should cautiously be considered when other non-cap sectoral policies affecting emissions are assumed in tandem. We also find that a transportation sector policy is consistently shown to be inefficient compared to an economy-wide capand-trade policy with a comparable level of emissions reductions. Keywords: Climate policy, Energy-economy modeling, Sectoral climate policies, Policy interaction





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