Integrated technological-economic modeling platform for energy and climate policy analysis
Computable general equilibrium (CGE) and bottom-up models each have unique strengths and weakness in evaluating energy and climate policies. This paper describes the development of an integrated technological, economic modelling platform (HYBTEP), built through the soft-link between the bottomup TIMES and the CGE GEM-E3 models. HYBTEP combines cost minimizing energy technology choices with macroeconomic responses, which is essential for energy-climate policy assessment. HYBTEP advances on other hybrid tools by assuming ‘full-form’ models, integrating detailed and extensive technology data with disaggregated economic structure, and ‘full-link’, i.e., covering all economic sectors. Using Portugal as a case study, we examine three scenarios: i) the current energyclimate policy, ii) a CO2 tax, and iii) renewable energy subsidy, with the objective of assessing the advantages of HYBTEP vis-à-vis bottom-up approach. Results show that the economic framework in HYBTEP partially offsets the increase or decrease in energy costs from the policy scenarios, while TIMES sets a wide range of results, dependent of energy services-price elasticities. HYBTEP allows the computation of the economic impacts of policies while considers technological detail. Moreover, the hybrid platform increases the transparency of policy analysis by making explicit the mechanisms through which energy demand evolves, resulting in high confidence for decision-making.
|Date of creation:||25 Jan 2014|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (757) 221-4311
Fax: (757) 221-2390
Web page: http://www.wm.edu/economics/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lanz, Bruno & Rausch, Sebastian, 2011. "General equilibrium, electricity generation technologies and the cost of carbon abatement: A structural sensitivity analysis," Energy Economics, Elsevier, vol. 33(5), pages 1035-1047, September.
- Manne, Alan & Mendelsohn, Robert & Richels, Richard, 1995. "MERGE : A model for evaluating regional and global effects of GHG reduction policies," Energy Policy, Elsevier, vol. 23(1), pages 17-34, January.
- Turton, Hal, 2008. "ECLIPSE: An integrated energy-economy model for climate policy and scenario analysis," Energy, Elsevier, vol. 33(12), pages 1754-1769.
- Valentina Bosetti, Carlo Carraro, Marzio Galeotti, Emanuele Massetti, Massimo Tavoni, 2006. "A World induced Technical Change Hybrid Model," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 13-38.
- Bohringer, Christoph & Rutherford, Thomas F., 2008. "Combining bottom-up and top-down," Energy Economics, Elsevier, vol. 30(2), pages 574-596, March.
- Bohringer, Christoph, 1998. "The synthesis of bottom-up and top-down in energy policy modeling," Energy Economics, Elsevier, vol. 20(3), pages 233-248, June.
- Sue Wing, Ian, 2008. "The synthesis of bottom-up and top-down approaches to climate policy modeling: Electric power technology detail in a social accounting framework," Energy Economics, Elsevier, vol. 30(2), pages 547-573, March.
- Frei, Christoph W. & Haldi, Pierre-Andre & Sarlos, Gerard, 2003. "Dynamic formulation of a top-down and bottom-up merging energy policy model," Energy Policy, Elsevier, vol. 31(10), pages 1017-1031, August.
- Strachan, Neil & Kannan, Ramachandran, 2008. "Hybrid modelling of long-term carbon reduction scenarios for the UK," Energy Economics, Elsevier, vol. 30(6), pages 2947-2963, November.
- Messner, Sabine & Schrattenholzer, Leo, 2000. "MESSAGE–MACRO: linking an energy supply model with a macroeconomic module and solving it iteratively," Energy, Elsevier, vol. 25(3), pages 267-282.
- Chris Bataille, Mark Jaccard, John Nyboer and Nic Rivers, 2006. "Towards General Equilibrium in a Technology-Rich Model with Empirically Estimated Behavioral Parameters," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 93-112.
- Patricia Fortes & Sofia Sim�es & J�lia 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.
- Schafer, Andreas & Jacoby, Henry D., 2005. "Technology detail in a multisector CGE model: transport under climate policy," Energy Economics, Elsevier, vol. 27(1), pages 1-24, January.
- Jean Charles Hourcade & Mark Jaccard & Chris Bataille & Frédéric Ghersi, 2006. "Hybrid Modeling: New Answers to Old Challenges," Post-Print halshs-00471234, HAL.
- Simões, Sofia & Cleto, João & Fortes, Patricia & Seixas, Júlia & Huppes, Gjalt, 2008. "Cost of energy and environmental policy in Portuguese CO2 abatement--scenario analysis to 2020," Energy Policy, Elsevier, vol. 36(9), pages 3598-3611, September.
- Böhringer, Christoph & Rutherford, Thomos F., 2009. "Integrated assessment of energy policies: Decomposing top-down and bottom-up," Journal of Economic Dynamics and Control, Elsevier, vol. 33(9), pages 1648-1661, September.
- Martinsen, Thomas, 2011. "Introducing technology learning for energy technologies in a national CGE model through soft links to global and national energy models," Energy Policy, Elsevier, vol. 39(6), pages 3327-3336, June.
- Chen, Wenying & Wu, Zongxin & He, Jiankun & Gao, Pengfei & Xu, Shaofeng, 2007. "Carbon emission control strategies for China: A comparative study with partial and general equilibrium versions of the China MARKAL model," Energy, Elsevier, vol. 32(1), pages 59-72.
- Labriet, Maryse & Kanudia, Amit & Loulou, Richard, 2012. "Climate mitigation under an uncertain technology future: A TIAM-World analysis," Energy Economics, Elsevier, vol. 34(S3), pages S366-S377.
- Proença, Sara & St. Aubyn, Miguel, 2013. "Hybrid modeling to support energy-climate policy: Effects of feed-in tariffs to promote renewable energy in Portugal," Energy Economics, Elsevier, vol. 38(C), pages 176-185.
When requesting a correction, please mention this item's handle: RePEc:cwm:wpaper:148. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Daifeng He)or (Alfredo Pereira)
If references are entirely missing, you can add them using this form.