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Calibrating the Mix of Electric Power Generation Types

Ken Itakura

from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: The shift in electric power generation types has gained attention in the context of climate change and more recently by the devastating nuclear fallouts in the aftermath of the Japanese earthquake. On the one hand, shifting away from fossil fuels to renewable energy sources would mitigate greenhouse gas emissions; on the other hand shifting from nuclear to fossil fuels is an immediate response to urgent situations. The shift of electric power sources will have economic impacts on production, consumption, and international trade. To capture the quantitative impacts through economic linkages, we implemented simulations with a global CGE model and database by asking the question: what would be the economic impact of shifting source of power generation away from nuclear in Japan? Simulation results show that reductions in the use of nuclear for electric power generation could have profound negative impacts on the economy.

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