Challenges in top-down and bottom-up soft-linking: Lessons from linking a Swedish energy system model with a CGE model

Anna Krook-Riekkola, Charlotte Berg, Erik O. Ahlgren and Patrik Söderholm

Energy, 2017, vol. 141, issue C, 803-817

Abstract: This paper proposes and discusses a soft-linking procedure between a Computable General Equilibrium (CGE) model and an energy system model with the aim to improve national energy policy decision-making. Significant positive and negative experiences are communicated. Specifically, the process of soft-linking the EMEC and TIMES-Sweden models is presented, and unlike previous work we rely on the use of multiple direction-specific connection points. Moreover, the proposed soft-linking methodology is applied in the context of a climate policy scenario for Sweden. The results display a partly new description of the Swedish economy, which when soft-linking, generates lower CO2-emissions in the reference scenario due to a decline in industrial energy demand. These findings point at the importance of linking bottom-up and top-down models when assessing national energy and climate policies.

Keywords: Soft-linking; CGE models; Energy system models; TIMES/MARKAL; Climate and energy policy; Decision-support (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (44)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:141:y:2017:i:c:p:803-817

DOI: 10.1016/j.energy.2017.09.107

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