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Top-down computable general equilibrium (CGE) models are used extensively for analysis of energy and climate policies. Energy-intensive industries are usually represented in top-down economic models as abstract economic production functions, of the constant-elasticity-ofsubstitution (CES)...
Persistent link: https://www.econbiz.de/10010324239
We motivate the formulation of market equilibria as a mixed complementarity problem (MCP) in order to bridge the gap between bottom-up energy system models and top-down general equilibrium models for energy policy analysis. Our objective is primarily pedagogic. We first lay out that the MCP...
Persistent link: https://www.econbiz.de/10010297453
The formulation of market equilibrium problems as mixed complementarity problems (MCP) permits integration of bottom-up programming models of the energy system into top-down general equilibrium models of the overall economy. Despite the coherence and logical appeal of the integrated MCP...
Persistent link: https://www.econbiz.de/10010297515
Energy is an important commodity in many economic activities. Its usage affects the environment via CO2 emissions and the Greenhouse Effect. Modeling the energy-economyenvironment-trade linkages is an important objective in applied economic policy analysis. Previously, however, the modeling of...
Persistent link: https://www.econbiz.de/10010260900
This paper endogenises the extent of intra-sectoral competition in a multi-sectoral model of oligopoly in general equilibrium. Firms choose capacity followed by prices. If the benefits of capacity investment in a given sector are below a threshold level, the sector exhibits Bertrand behaviour,...
Persistent link: https://www.econbiz.de/10010293771
Examples of simple economic theory models are analyzed as restrictions on the Cointegrated VAR (CVAR). This establishes …
Persistent link: https://www.econbiz.de/10010298620
This paper presents the technical background for our computable general equilibrium (CGE) analysis of different worldwide liberalization scenarios in agricultural markets. The main features of the examined agricultural protection policies are explained and descriptions of the applied economic...
Persistent link: https://www.econbiz.de/10010435543
The Global Integrated Sustainability Model (GISMO), developed at the Netherlands Environmental Assessment Agency (PBL), is a platform for analysing the complexity of sustainable development and human well-being with regards to the three sustainability domains: People, Planet, and Profit (PPP)....
Persistent link: https://www.econbiz.de/10010314311
This paper reviews the major finance-related causes of private under-investment in innovation and the consequent alternative choices for public policy. The focus is on incentive-based arguments that address the problem of limited appropriability of new knowledge, and on the lacking access to...
Persistent link: https://www.econbiz.de/10011435227
The most cost-effective policies for achieving CO2 abatement (e.g., carbon taxes) fail to get off the ground politically because of unacceptable distributional consequences. This paper explores CO2 abatement policies designed to address distributional concerns. Using an intertemporal numerical...
Persistent link: https://www.econbiz.de/10011608631