Economic and Technological Models for Evaluation of Energy Policy

Models for energy policy assessment have been developed using both process analysis and econometrics. The process approach provides for the incorporation of information on future technological and structural changes based on detailed engineering studies. The econometric approach is well adapted to the description of aggressive consumer behavior and economic activity. This paper presents a new approach for policy assessment, integrating process analysis and econometric models that have been used extensively in energy policy analysis and technology assessment. We illustrate the application of this approach by an analysis of a national research, development, and demonstration plan for the United States.