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

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  • Christoph Bohringer and Andreas Loschel

Abstract

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.

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Bibliographic Info

Article provided by International Association for Energy Economics in its journal The Energy Journal.

Volume (Year): Hybrid Modeling (2006)
Issue (Month): Special Issue #2 ()
Pages: 135-150

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Handle: RePEc:aen:journl:2006se_jaccard-a07

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Cited by:
  1. Dannenberg, Astrid & Mennel, Tim & Moslener, Ulf, 2007. "What Does Europe Pay for Clean Energy? Review of Macroeconomic Simulation Studies," ZEW Discussion Papers 07-019, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Xavier Labandeira Villot & Pedro Linares & Miguel Rodríguez, 2009. "An Integrated Approach to Simulate the Impacts of Carbon Emissions Trading Schemes," Working Papers 2009-29, FEDEA.
  3. Murphy, Rose & Rivers, Nic & Jaccard, Mark, 2007. "Hybrid modeling of industrial energy consumption and greenhouse gas emissions with an application to Canada," Energy Economics, Elsevier, vol. 29(4), pages 826-846, July.
  4. Susana Silva & Isabel Soares & Carlos Pinho, 2011. "The impact of renewable energy sources on economic growth and CO2 emissions - a SVAR approach," FEP Working Papers 407, Universidade do Porto, Faculdade de Economia do Porto.
  5. Hübler, Michael & Löschel, Andreas, 2013. "The EU Decarbonisation Roadmap 2050—What way to walk?," Energy Policy, Elsevier, vol. 55(C), pages 190-207.
  6. Veronika Kulmer, 2013. "Promoting alternative, environmentally friendly passenger transport technologies: Directed technological change in a bottom-up/top-down CGE model," Graz Economics Papers 2013-02, University of Graz, Department of Economics.

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