A hybrid energy-economy model for global integrated assessment of climate change, carbon mitigation and energy transformation

Yiyong Cai, David Newth, John Finnigan and Don Gunasekera

Applied Energy, 2015, vol. 148, issue C, 395 pages

Abstract: This paper introduces the design of the CSIRO variant of the Global Trade and Environment model (GTEM-C). GTEM-C is a hybrid model that combines the top-down macroeconomic representation of a computable general equilibrium model with the bottom-up engineering details of energy production. The model features detailed accounting for global energy flows that are embedded in traded energy goods, and it offers a unified framework to analyse the energy-carbon-environment nexus. As an illustrative example, we present simulation results on global energy transformation under the Intergovernmental Panel on Climate Change’s representative carbon pathways 4.5 and 8.5. By testing the model’s sensitivity to the relevant parameter, we find that the pace of electrification will significantly contain the spiking of carbon prices because electricity can be produced from carbon-free or less carbon-intensive technologies. The decoupling of energy use and carbon footprint, due to the uptake of clean electricity technologies, such as nuclear, wind, solar, and carbon capture and storage, allows the world to maintain high level of energy consumption, which is essential to economic growth.

Keywords: Computable general equilibrium; Hybrid model; Integrated assessment; Carbon mitigation policy (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0306261915004080
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:appene:v:148:y:2015:i:c:p:381-395

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/bibliographic
http://www.elsevier. ... 405891/bibliographic

DOI: 10.1016/j.apenergy.2015.03.106

Access Statistics for this article

Applied Energy is currently edited by J. Yan

More articles in Applied Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().