Induced Technological Change in a Limited Foresight Optimization Model

Fredrik Hedenus, Christian Azar and Kristian Lindgren

The Energy Journal, 2006, vol. Endogenous Technological Change, issue Special Issue #1, 109-122

Abstract: The threat of global warming calls for a major transformation of the energy system in the coming century. The treatment of technological change in energy system models is a critical challenge. Technological change may be treated as induced by climate policy or as exogenous. We investigate the importance of induced technological change (ITC) in GET-LFL, an iterative optimization model with Limited Foresight that incorporates Learning-by-doing. Scenarios for stabilization of atmospheric CO2 concentrations at 400, 450, 500 and 550 ppm are studied. We find that the introduction of ITC reduces the total net present value of the abatement cost over this century by 3-9% compared to a case where technological learning is exogenous. Technology specific policies which force the introduction of fuel cell cars and solar PV in combination with ITC reduce the costs further by 4-7% and lead to significantly different technological solutions, primarily in the transport sector.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
http://www.iaee.org/en/publications/ejarticle.aspx?id=2135 (text/html)
Access to full text is restricted to IAEE members and subscribers.

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:aen:journl:2006se-a04

Ordering information: This journal article can be ordered from
http://www.iaee.org/en/publications/ejsearch.aspx

Access Statistics for this article

More articles in The Energy Journal from International Association for Energy Economics Contact information at EDIRC.
Bibliographic data for series maintained by David Williams (iaee@iaee.org).