Downscaling heterogeneous household outcomes in dynamic CGE models for energy-economic analysis

Nikolai B. Melnikov, O’Neill, Brian C., Michael G. Dalton and Bas van Ruijven

Energy Economics, 2017, vol. 65, issue C, 87-97

Abstract: Downscaling methods for dynamic computable general equilibrium models are developed and analyzed. The methods produce outcomes for a variety of different household types by downscaling the aggregate quantities from an economic growth model with a representative household. This approach uses household survey data and long-term population projections for different household types to compare the performance of the downscaling methods vs. a general equilibrium model with multiple household groups under a variety of conditions, including demographic change, technological change, and a carbon tax. Both recursive-dynamic and forward-looking downscaling methods produce results that approximate well a multiple household model run. The recursive-dynamic downscaling method is applied to an illustrative example estimating impacts of a carbon tax on aggregate CO2 emissions and the energy demand of different household groups for a middle of the road development scenario.

Keywords: Computable general equilibrium; Economic growth; Demographic heterogeneity; Energy demand; Carbon tax (search for similar items in EconPapers)
JEL-codes: C61 D91 J11 O41 Q43 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:65:y:2017:i:c:p:87-97

DOI: 10.1016/j.eneco.2017.04.023

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