IDEAS home Printed from https://ideas.repec.org/p/rri/wpaper/2007wp05.html
   My bibliography  Save this paper

Global Impact of Energy Use in Middle East Oil Economies: A Modeling Framework for Analyzing Technology-Energy-Environment-Economy Chain

Author

Listed:
  • Hodjat Ghadimi

    (Design & Merchandising, West Virginia University)

Abstract

To explore choices of improving energy efficiency in energy-rich countries of the Middle East, this study lays out an integrated modeling framework for analyzing the technology-energy-environment-economy chain for the case of an energy exporting country. This framework consists of an input output process-flow model (IOPM) and a computable general equilibrium (CGE) model. The former investigates the micro-level production processes and sectoral interdependencies to show how alternative technologies affect the energy intensity of the economy (Lin, Polenske 1998 and Polenske, McMichael 2002). The latter belongs to the optimal depletion category of CGE models that analyzes energy economy interaction; it is an optimization model that solves the inter-temporal resource depletion problem subject to the workings of a multi-sector market economy, where relative prices play a crucial role (Ghadimi 1995, 2006). Such a formulation provides a systematic framework for analyzing the technology-energy-environment-economy chain in resource-rich developing countries. The main focus of this paper is to describe the theoretical structure of the class of CGE model proposed for this modeling framework.

Suggested Citation

  • Hodjat Ghadimi, 2007. "Global Impact of Energy Use in Middle East Oil Economies: A Modeling Framework for Analyzing Technology-Energy-Environment-Economy Chain," Working Papers Working Paper 2007-05, Regional Research Institute, West Virginia University.
    • Handle: RePEc:rri:wpaper:2007wp05
    as

    Download full text from publisher

    File URL: https://researchrepository.wvu.edu/rri_pubs/66/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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. 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.
    3. Gilbert E. Metcalf, 2006. "Energy Conservation in the United States: Understanding its Role in Climate Policy," Discussion Papers Series, Department of Economics, Tufts University 0609, Department of Economics, Tufts University.
    4. McFarland, J. R. & Reilly, J. M. & Herzog, H. J., 2004. "Representing energy technologies in top-down economic models using bottom-up information," Energy Economics, Elsevier, vol. 26(4), pages 685-707, July.
    5. Bergman, Lars, 1990. "Energy and environmental constraints on growth: A CGE modeling approach," Journal of Policy Modeling, Elsevier, vol. 12(4), pages 671-691.
    6. repec:rri:wpaper:200607 is not listed on IDEAS
    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. 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.
    9. Bergman, Lars, 1988. "Energy Policy Modeling: A survey of general equilibrium approaches," Journal of Policy Modeling, Elsevier, vol. 10(3), pages 377-399.
    10. Polenske, Karen R. & McMichael, Francis C., 2002. "A Chinese cokemaking process-flow model for energy and environmental analyses," Energy Policy, Elsevier, vol. 30(10), pages 865-883, August.
    11. 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.
    12. 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.
    Full references (including those not matched with items on IDEAS)

    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. repec:rri:wpaper:200705 is not listed on IDEAS
    2. 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.
    3. repec:rri:wpaper:200802 is not listed on IDEAS
    4. repec:rri:wpaper:200607 is not listed on IDEAS
    5. Lecca, Patrizio & Swales, Kim & Turner, Karen, 2011. "An investigation of issues relating to where energy should enter the production function," Economic Modelling, Elsevier, vol. 28(6), pages 2832-2841.
    6. Turner, Karen, 2009. "Negative rebound and disinvestment effects in response to an improvement in energy efficiency in the UK economy," Energy Economics, Elsevier, vol. 31(5), pages 648-666, September.
    7. Karen Turner, 2008. "A Computable General Equilibrium Analysis of the Relative Price Sensitivity Required to Induce Rebound Effects in Response to an Improvement in Energy Efficiency in the UK Economy," Working Papers 0807, University of Strathclyde Business School, Department of Economics.
    8. repec:rri:wpaper:200611 is not listed on IDEAS
    9. Hodjat Ghadimi, 2006. "An Optimal Depletion CGE Model: A Systematic Framework for Energy-Economy Analysis in Resource-based Economies," Working Papers Working Paper 2006-11, Regional Research Institute, West Virginia University.
    10. Allan, Grant & Hanley, Nick & McGregor, Peter & Swales, Kim & Turner, Karen, 2007. "The impact of increased efficiency in the industrial use of energy: A computable general equilibrium analysis for the United Kingdom," Energy Economics, Elsevier, vol. 29(4), pages 779-798, July.
    11. Janine De Fence & Nick Hanley & Karen Turner, 2009. "Do Productivity Improvements Move Us Along the Environmental Kuznets Curve?," Working Papers 0908, University of Strathclyde Business School, Department of Economics.
    12. Linda Ferguson & Peter Mcgregor & J. Kim Swales & Karen Turner & Ya Ping Yin, 2005. "Incorporating sustainability indicators into a computable general equilibrium model of the scottish economy," Economic Systems Research, Taylor & Francis Journals, vol. 17(2), pages 103-140.
    13. 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.
    14. Wissema, Wiepke & Dellink, Rob, 2007. "AGE analysis of the impact of a carbon energy tax on the Irish economy," Ecological Economics, Elsevier, vol. 61(4), pages 671-683, March.
    15. Grant Allan & Peter McGregor & Kim Swales & Karen Turner, 2007. "The UK Climate Change Levy and the Potential for Double-Dividend Effects under Different Labour Market Specifications: a Computable General Equilibrium Analysis for the United Kingdom," Energy and Environmental Modeling 2007 24000001, EcoMod.
    16. Turner, Karen & Munday, Max & McGregor, Peter & Swales, Kim, 2012. "How responsible is a region for its carbon emissions? An empirical general equilibrium analysis," Ecological Economics, Elsevier, vol. 76(C), pages 70-78.
    17. Erno Zalai, 1998. "Computable Equilibrium Modelling and Application to Economies in Transition," CERT Discussion Papers 9804, Centre for Economic Reform and Transformation, Heriot Watt University.
    18. Turner, Karen & Hanley, Nick, 2011. "Energy efficiency, rebound effects and the environmental Kuznets Curve," Energy Economics, Elsevier, vol. 33(5), pages 709-720, September.
    19. Anson, Sam & Turner, Karen, 2009. "Rebound and disinvestment effects in refined oil consumption and supply resulting from an increase in energy efficiency in the Scottish commercial transport sector," Energy Policy, Elsevier, vol. 37(9), pages 3608-3620, September.
    20. Ansona, Sam & Turner, Karen, 2009. "Rebound and disinvestment effects in oil consumption and supply resulting from an increase in energy efficiency in the Scottish commercial transport sector," SIRE Discussion Papers 2009-05, Scottish Institute for Research in Economics (SIRE).
    21. Laha, Priyanka & Chakraborty, Basab, 2017. "Energy model – A tool for preventing energy dysfunction," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 95-114.
    22. Bergman, Lars, 2005. "CGE Modeling of Environmental Policy and Resource Management," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 3, chapter 24, pages 1273-1306, Elsevier.
    23. 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.
    24. Marc Vielle & Alain L. Bernard, 1998. "Un exemple d'utilisation : le coût de politiques de réduction des gaz à effet de serre," Économie et Prévision, Programme National Persée, vol. 136(5), pages 33-48.

    More about this item

    Keywords

    energy use; middle East; input-output; computable general equilibrium; cge;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

    Statistics

    Access and download statistics

    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:rri:wpaper:2007wp05. 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: Randall Jackson (email available below). General contact details of provider: https://edirc.repec.org/data/rrwvuus.html .

    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.