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Challenges in top-down and bottom-up soft-linking: Lessons from linking a Swedish energy system model with a CGE model

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  • Krook-Riekkola, Anna
  • Berg, Charlotte
  • Ahlgren, Erik O.
  • Söderholm, Patrik

Abstract

This paper proposes and discusses a soft-linking procedure between a Computable General Equilibrium (CGE) model and an energy system model with the aim to improve national energy policy decision-making. Significant positive and negative experiences are communicated. Specifically, the process of soft-linking the EMEC and TIMES-Sweden models is presented, and unlike previous work we rely on the use of multiple direction-specific connection points. Moreover, the proposed soft-linking methodology is applied in the context of a climate policy scenario for Sweden. The results display a partly new description of the Swedish economy, which when soft-linking, generates lower CO2-emissions in the reference scenario due to a decline in industrial energy demand. These findings point at the importance of linking bottom-up and top-down models when assessing national energy and climate policies.

Suggested Citation

  • Krook-Riekkola, Anna & Berg, Charlotte & Ahlgren, Erik O. & Söderholm, Patrik, 2017. "Challenges in top-down and bottom-up soft-linking: Lessons from linking a Swedish energy system model with a CGE model," Energy, Elsevier, vol. 141(C), pages 803-817.
    • Handle: RePEc:eee:energy:v:141:y:2017:i:c:p:803-817
    DOI: 10.1016/j.energy.2017.09.107
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