A Regional Economy-Energy-Transport Model of the EU for Assessing Decarbonization in Transport

Ioannis Charalampidis, Panagiotis Karkatsoulis and Pantelis Capros
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Ioannis Charalampidis: E3MLab, School of Electrical and Computer Engineering, National Technical University of Athens, 15773 Athens, Greece
Panagiotis Karkatsoulis: E3MLab, School of Electrical and Computer Engineering, National Technical University of Athens, 15773 Athens, Greece
Pantelis Capros: E3MLab, School of Electrical and Computer Engineering, National Technical University of Athens, 15773 Athens, Greece

Energies, 2019, vol. 12, issue 16, 1-27

Abstract: The EU decarbonization strategy foresees deep cuts in CO 2 in the transport sector. Investment in infrastructure, manufacturing of new technology vehicles and production of alternative fuels induce macroeconomic changes in activity and employment for both national and regional economies. The objective of the paper is to present a newly built macroeconomic-regional model (GEM-E3-R general equilibrium model for economy, energy and environment for regions) for assessing impacts of transport sector restructuring on regional economies of the entire EU, segmented following NUTS-3 (nomenclature of territorial units of statistics). The model combines general economic equilibrium theory with location choice and New Economic Geography and implements a dynamic, fully endogenous agglomeration-dispersion mechanism for people and industries coupled with a gravity model for bilateral interregional flows. A novelty of the model is a two-layers structure: (i) the country-wide layer formulated as a global multi-sector, multi-country and multi-period computable general equilibrium (CGE) model; and (ii) the regional economy layer, which simulates impacts on regional economies, while considering country-wide economic trends as boundary conditions. The paper presents a use of the model in the assessment of regional economic effects of electrification of car mobility in Europe and wide use of domestically produced advanced biofuels.

Keywords: spatial general economic equilibrium; transport sector modelling; decarbonization of transport sector; regional economic impacts (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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