IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v123y2023ics0140988323002487.html
   My bibliography  Save this article

Soft-linking a national computable general equilibrium model (ThreeME) with a detailed energy system model (IESA-Opt)

Author

Listed:
  • Fattahi, Amirhossein
  • Reynès, Frédéric
  • van der Zwaan, Bob
  • Sijm, Jos
  • Faaij, André

Abstract

Top-down CGE models are used to assess the economic impacts of climate change policies. However, these models do not represent the technologies and sources of greenhouse gas emissions as detailed as bottom-up energy system models. Linking a top-down CGE model with a bottom-up energy system model assures macroeconomic consistency while accounting for a detailed representation of energy and emission flows. While there is ample literature regarding the linking process, the corresponding details and underlying assumptions are barely described in detail. The present paper describes a step-by-step soft-linking process and its underlying assumptions, using the Netherlands as a case study. This soft-linking process increases the Dutch energy demand levels in 2050 by 19.5% on average compared to assumed exogenous levels. Moreover, the GDP in 2050 reduces by 5.5% compared to the baseline economic scenario. Furthermore, we identified high energy prices as the primary cause of this GDP reduction in the soft-linking process.

Suggested Citation

  • Fattahi, Amirhossein & Reynès, Frédéric & van der Zwaan, Bob & Sijm, Jos & Faaij, André, 2023. "Soft-linking a national computable general equilibrium model (ThreeME) with a detailed energy system model (IESA-Opt)," Energy Economics, Elsevier, vol. 123(C).
    • Handle: RePEc:eee:eneeco:v:123:y:2023:i:c:s0140988323002487
    DOI: 10.1016/j.eneco.2023.106750
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988323002487
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2023.106750?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Garaffa, Rafael & Weitzel, Matthias & Vandyck, Toon & Keramidas, Kimon & Paul, Dowling & Tchung-Ming, Stéphane & Florian, Fosse & Ana, Diaz Vazquez & Jacques, Deprés & Peter, Russ & Schade, Burkhard &, 2022. "Energy-economy implications of the Glasgow pledges: a global stocktake of COP26," Conference papers 333425, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. repec:hal:spmain:info:hdl:2441/11505qn4ak95irt0cafaeim81j is not listed on IDEAS
    3. Kenneth C. Hoffman & Dale W. Jorgenson, 1977. "Economic and Technological Models for Evaluation of Energy Policy," Bell Journal of Economics, The RAND Corporation, vol. 8(2), pages 444-466, Autumn.
    4. 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.
    5. Wene, C.-O., 1996. "Energy-economy analysis: Linking the macroeconomic and systems engineering approaches," Energy, Elsevier, vol. 21(9), pages 809-824.
    6. repec:spo:wpmain:info:hdl:2441/11505qn4ak95irt0cafaeim81j is not listed on IDEAS
    7. Patricia Fortes & Sofia Simões & Júlia Seixas & Denise Van Regemorter & Francisco Ferreira, 2013. "Top-down and bottom-up modelling to support low-carbon scenarios: climate policy implications," Climate Policy, Taylor & Francis Journals, vol. 13(3), pages 285-304, May.
    8. 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.
    9. Stephen C Peck & Thomas J. Teisberg, 1992. "CETA: A Model for Carbon Emissions Trajectory Assessment," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 55-78.
    10. P. Capros & Denise Van Regemorter & Leonidas Paroussos & P. Karkatsoulis & C. Fragkiadakis & S. Tsani & I. Charalampidis & Tamas Revesz, 2013. "GEM-E3 Model Documentation," JRC Research Reports JRC83177, Joint Research Centre.
    11. Leonidas Mantzos & Tobias Wiesenthal & Frederik Neuwahl & Mate Rozsai, 2019. "The POTEnCIA Central scenario: An EU energy outlook to 2050," JRC Research Reports JRC118353, Joint Research Centre.
    12. KERAMIDAS Kimon & FOSSE Florian & DIAZ VAZQUEZ Ana & DOWLING Paul & GARAFFA Rafael & DESPRÉS Jacques & RUSS Hans Peter & SCHADE Burkhard & SCHMITZ Andreas & SORIA RAMIREZ Antonio & VANDYCK Toon & WEIT, 2021. "Global Energy and Climate Outlook 2021: Advancing towards climate neutrality," JRC Research Reports JRC126767, Joint Research Centre.
    13. Östblom, Göran & Berg, Charlotte, 2006. "The EMEC model: Version 2.0," Working Papers 96, National Institute of Economic Research.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Boonman, Hettie & Pisciella, Paolo & Reynès, Frédéric, 2024. "The macroeconomic impact of policy measures, technological progress and societal attitude in energy transition scenarios," Energy, Elsevier, vol. 297(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xin Su & Frédéric Ghersi & Fei Teng & Gaëlle Treut & Meicong Liang, 2022. "The economic impact of a deep decarbonisation pathway for China: a hybrid model analysis through bottom-up and top-down linking," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 27(1), pages 1-37, January.
    2. 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.
    3. Pisciella, Paolo & van Beesten, E. Ruben & Tomasgard, Asgeir, 2023. "Efficient coordination of top-down and bottom-up models for energy system design: An algorithmic approach," Energy, Elsevier, vol. 284(C).
    4. Helgesen, Per Ivar & Tomasgard, Asgeir, 2018. "From linking to integration of energy system models and computational general equilibrium models – Effects on equilibria and convergence," Energy, Elsevier, vol. 159(C), pages 1218-1233.
    5. Gerlagh, Reyer, 2007. "Measuring the value of induced technological change," Energy Policy, Elsevier, vol. 35(11), pages 5287-5297, November.
    6. Andersen, Kristoffer S. & Termansen, Lars B. & Gargiulo, Maurizio & Ó Gallachóirc, Brian P., 2019. "Bridging the gap using energy services: Demonstrating a novel framework for soft linking top-down and bottom-up models," Energy, Elsevier, vol. 169(C), pages 277-293.
    7. Reyer Gerlagh & Wietze Lise, 2003. "Induced Technological Change Under Carbon Taxes," Working Papers 2003.84, Fondazione Eni Enrico Mattei.
    8. Gerlagh, Reyer & Lise, Wietze, 2005. "Carbon taxes: A drop in the ocean, or a drop that erodes the stone? The effect of carbon taxes on technological change," Ecological Economics, Elsevier, vol. 54(2-3), pages 241-260, August.
    9. Chang, Miguel & Lund, Henrik & Thellufsen, Jakob Zinck & Østergaard, Poul Alberg, 2023. "Perspectives on purpose-driven coupling of energy system models," Energy, Elsevier, vol. 265(C).
    10. Taran Faehn & Gabriel Bachner & Robert Beach & Jean Chateau & Shinichiro Fujimori & Madanmohan Ghosh & Meriem Hamdi-Cherif & Elisa Lanzi & Sergey Paltsev & Toon Vandyck & Bruno Cunha & Rafael Garaffa , 2020. "Capturing Key Energy and Emission Trends in CGE models: Assessment of Status and Remaining Challenges," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 5(1), pages 196-272, June.
    11. Durand-Lasserve, Olivier & Almutairi, Hossa & Aljarboua, Abdullah & Pierru, Axel & Pradhan, Shreekar & Murphy, Frederic, 2023. "Hard-linking a top-down economic model with a bottom-up energy system for an oil-exporting country with price controls," Energy, Elsevier, vol. 266(C).
    12. Willenbockel, Dirk, 2017. "Macroeconomic Effects of a Low-Carbon Electricity Transition in Kenya and Ghana: An Exploratory Dynamic General Equilibrium Analysis," MPRA Paper 78070, University Library of Munich, Germany.
    13. Lee, Hwarang & Kang, Sung Won & Koo, Yoonmo, 2020. "A hybrid energy system model to evaluate the impact of climate policy on the manufacturing sector: Adoption of energy-efficient technologies and rebound effects," Energy, Elsevier, vol. 212(C).
    14. Shahriyar Nasirov & Raúl O’Ryan & Héctor Osorio, 2020. "Decarbonization Tradeoffs: A Dynamic General Equilibrium Modeling Analysis for the Chilean Power Sector," Sustainability, MDPI, vol. 12(19), pages 1-19, October.
    15. Duan, Hong-Bo & Zhu, Lei & Fan, Ying, 2014. "Optimal carbon taxes in carbon-constrained China: A logistic-induced energy economic hybrid model," Energy, Elsevier, vol. 69(C), pages 345-356.
    16. Lekavičius, Vidas & Galinis, Arvydas & Miškinis, Vaclovas, 2019. "Long-term economic impacts of energy development scenarios: The role of domestic electricity generation," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    17. Gerlagh, Reyer & van der Zwaan, Bob, 2003. "Gross world product and consumption in a global warming model with endogenous technological change," Resource and Energy Economics, Elsevier, vol. 25(1), pages 35-57, February.
    18. Uyterlinde, Martine A. & Junginger, Martin & de Vries, Hage J. & Faaij, Andre P.C. & Turkenburg, Wim C., 2007. "Implications of technological learning on the prospects for renewable energy technologies in Europe," Energy Policy, Elsevier, vol. 35(8), pages 4072-4087, August.
    19. Golombek, Rolf & Lind, Arne & Ringkjøb, Hans-Kristian & Seljom, Pernille, 2022. "The role of transmission and energy storage in European decarbonization towards 2050," Energy, Elsevier, vol. 239(PC).
    20. García-Gusano, Diego & Garraín, Daniel & Dufour, Javier, 2017. "Prospective life cycle assessment of the Spanish electricity production," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 21-34.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:123:y:2023:i:c:s0140988323002487. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.