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

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  • Hodjat Ghadimi

    (Regional Research Institute, West Virginia University)

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.

Suggested Citation

  • Hodjat Ghadimi, 2008. "Energy in a Resource-based Regional Economy: A Dynamic General Equilibrium Analysis," Working Papers Working Paper 2008-02, Regional Research Institute, West Virginia University.
    • Handle: RePEc:rri:wpaper:2008wp02
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    File URL: https://researchrepository.wvu.edu/rri_pubs/75/
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    References listed on IDEAS

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    1. Hodjat Ghadimi, 2006. "A Dynamic CGE Analysis of Exhaustible Resources: The Case of an Oil Exporting Developing Country," Working Papers Working Paper 2006-07, Regional Research Institute, West Virginia University.
    2. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    3. 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.
    4. Mark D. Partridge & Dan S. Rickman, 1998. "Regional Computable General Equilibrium Modeling: A Survey and Critical Appraisal," International Regional Science Review, , vol. 21(3), pages 205-248, December.
    5. Christoph Böhringer, 1996. "Fossil fuel subsidies and environmental constraints," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 8(3), pages 331-349, October.
    6. Bergman, Lars, 1990. "Energy and environmental constraints on growth: A CGE modeling approach," Journal of Policy Modeling, Elsevier, vol. 12(4), pages 671-691.
    7. repec:rri:wpaper:200607 is not listed on IDEAS
    8. Bhattacharyya, Subhes C., 1996. "Applied general equilibrium models for energy studies: a survey," Energy Economics, Elsevier, vol. 18(3), pages 145-164, July.
    9. 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.
    10. 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.
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    14. 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.
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    Cited by:

    1. Hodjat Ghadhimi, 2009. "Sustainable Economic Development in Energy Rich Economies: A Regional Approach," Working Papers Working Paper 2009-05, Regional Research Institute, West Virginia University, revised 21 Feb 2010.
    2. repec:rri:wpaper:201018 is not listed on IDEAS
    3. Hodjat, 2010. "Sustainable Economic Development in Energy Rich Economies: A Regional Approach," Working Papers Working Paper 2010-18, Regional Research Institute, West Virginia University.
    4. repec:rri:wpaper:200905 is not listed on IDEAS

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    More about this item

    Keywords

    sustainable energy; energy economics; regional development;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment

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