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Energy in a Resource-based Regional Economy: A Dynamic General Equilibrium Analysis

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  • Hodjat Ghadimi

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    (Regional Research Institute, West Virginia University)

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    Abstract

    States and even local governments are increasingly realizing the need for long-term sustainable energy-environment planning as an integral part of their economic development program. These sub-national units are progressively playing a more active role in advancing policies for the reliability, environmental sustainability, and exploring the economic development impact of their energy resources and supplies. T his article outlines a modeling framework for an integrated analysis of the energy-environment-economy system in an energy resource-based region within a developed economy. The theoretical structure and mathematical skeletal of this dynamic optimal depletion computable general equilibrium model as the core of this modeling framework is presented in this paper. This model can be used to analyze complex economic development issues arising from energy-environment-economy interactions in regions enjoying an abundance of exhaustible fossil fuel resources.

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    File URL: http://rri.wvu.edu/wp-content/uploads/2012/11/wpGhadimi2008-2.pdf
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    Bibliographic Info

    Paper provided by Regional Research Institute, West Virginia University in its series Working Papers with number 200802.

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    Length: 19 pages
    Date of creation: 2008
    Date of revision:
    Handle: RePEc:rri:wpaper:200802

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    Keywords: sustainable energy; energy economics; regional development;

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    1. Bergman, Lars, 1988. "Energy Policy Modeling: A survey of general equilibrium approaches," Journal of Policy Modeling, Elsevier, vol. 10(3), pages 377-399.
    2. Hodjat Ghadimi, 2006. "A Dynamic CGE Analysis of Exhaustible Resources: The Case of an Oil Exporting Developing Country," Working Papers 200607, Regional Research Institute, West Virginia University.
    3. Despotakis, Kostas A. & Fisher, Anthony C., 1988. "Energy in a regional economy: A computable general equilibrium model for california," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 313-330, September.
    4. Bergman, Lars, 1990. "Energy and environmental constraints on growth: A CGE modeling approach," Journal of Policy Modeling, Elsevier, vol. 12(4), pages 671-691.
    5. Devarajan, Shantayanan & Go, Delfin S., 1998. "The Simplest Dynamic General-Equilibrium Model of an Open Economy," Journal of Policy Modeling, Elsevier, vol. 20(6), pages 677-714, December.
    6. Longva, Svein & Olsen, Oystein, 1983. " Price Sensitivity of Energy Demand in Norwegian Industries," Scandinavian Journal of Economics, Wiley Blackwell, vol. 85(1), pages 17-36.
    7. Aarrestad, Jostein, 1978. "Optimal savings and exhaustible resource extraction in an open economy," Journal of Economic Theory, Elsevier, vol. 19(1), pages 163-179, October.
    8. Dellink, Rob & van Ierland, Ekko, 2006. "Pollution abatement in the Netherlands: A dynamic applied general equilibrium assessment," Journal of Policy Modeling, Elsevier, vol. 28(2), pages 207-221, February.
    9. Alan S. Manne & Thomas F. Rutherford, 1994. "International Trade in Oil, Gas and Carbon Emission Rights: An Intertemporal General Equilibrium Model," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 57-76.
    10. Devarajan, Shantayanan, 1988. "Natural resources and taxation in computable general equilibrium models of developing countries," Journal of Policy Modeling, Elsevier, vol. 10(4), pages 505-528.
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