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E3 Models Revisited

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Author Info

  • Susana Silva

    ()
    (Faculdade de Economia, Universidade do Porto)

  • Isabel Soares

    ()
    (CEF.UP, Faculdade de Economia, Universidade do Porto)

  • Óscar Afonso

    ()
    (CEF.UP, OBEGEF, Faculdade de Economia, Universidade do Porto)

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    Abstract

    This article analyses the contribution of E3 models to fully understand the complex relationship between the environment, economics and the energy sector. We present a survey of the literature on these models, analyzing the assumptions, features and scope of the main kinds of methodological approaches: bottom-up, top-down and hybrid models. Since the literature on these models is vast, complex and diffuse, our aim is to present it in a simple and compact way. We also show how bottom-up (BU) models depart from top-down (TD) ones and how that approach affects their conclusions and implications. As an attempt to solve the TD-BU incompatibilities, different kinds of hybrid models are examined and their capacity to support realistic environmental policies is criticized under a microeconomic perspective.

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    File URL: http://www.fep.up.pt/investigacao/workingpapers/10.12.02_wp393.pdf
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    Bibliographic Info

    Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 393.

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    Length: 17 pages
    Date of creation: Dec 2010
    Date of revision:
    Handle: RePEc:por:fepwps:393

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    Related research

    Keywords: E3 models; bottom-up models; top-down models; hybrid models;

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    References

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    1. van Vuuren, Detlef P. & de Vries, Bert & Eickhout, Bas & Kram, Tom, 2004. "Responses to technology and taxes in a simulated world," Energy Economics, Elsevier, vol. 26(4), pages 579-601, July.
    2. van der Zwaan, B. C. C. & Gerlagh, R. & G. & Klaassen & Schrattenholzer, L., 2002. "Endogenous technological change in climate change modelling," Energy Economics, Elsevier, vol. 24(1), pages 1-19, January.
    3. Christoph Böhringer & Thomas Rutherford, 2002. "Carbon Abatement and International Spillovers," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(3), pages 391-417, July.
    4. Rutherford, Thomas F. & Böhringer, Christoph, 2006. "Combining Top-Down and Bottom-up in Energy Policy Analysis: A Decomposition Approach," ZEW Discussion Papers 06-07, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    5. Jonathan Kohler, Terry Barker, Dennis Anderson and Haoran Pan, 2006. "Combining Energy Technology Dynamics and Macroeconometrics: The E3MG Model," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 113-134.
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