Economic effects of sustainable energy technology progress under carbon reduction targets: An analysis based on a dynamic multi-regional CGE model

Zhiyuan Gao, Ying Zhao, Lianqing Li and Yu Hao

Applied Energy, 2024, vol. 363, issue C, No S0306261924004549

Abstract: Advancing sustainable energy technologies (SET) is crucial for achieving carbon neutrality and effectively addressing climate change. Unlike most studies that focus on individual sustainable energy policies, this research constructs a recursive computable general equilibrium (CGE) model with comprehensive sustainable energy modules to analyze the macroeconomic effects of multiple policies related to SET advancement. Covering 8 regions, 13 energy sectors, and 37 intermediate input sectors, the study evaluates the economic and ecological impacts of various SET advancement scenarios from a global economic perspective, aiming for consistent carbon reduction. The findings reveal that : (1) SET implementation reduces electricity costs for residents, optimizes industrial structure, decreases fossil fuel usage, enhances energy use structure, and lowers carbon taxes; (2) the collective impact of renewable energies surpasses that of individual sources, with newer renewables like wind and solar power outperforming traditional ones such as hydropower and nuclear power; and (3) advancements in alternative energy technology have had diverse effects on the global energy environment and economic development. Based on these conclusions, we recommend that: (1) prioritizing the development of solar and wind power in the short term; (2) optimizing SET advancement mechanisms to support progress, including enhancing the market-based price formation for sustainable energy generation and promoting technological innovation and cost reduction; (3) encouraging a synergistic transformation of renewable energy with coal, gas power, and other sources to maximize policy synergies.

Keywords: Carbon neutrality; Sustainable energy; Technological progress; Dynamic multi-region CGE (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (11)

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DOI: 10.1016/j.apenergy.2024.123071

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