Extending GTAP Data for Climate Policy Analysis

Ronald D. Sands, Man-Keun Kim and Allen A. Fawcett

No 331629, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: The Global Trade Analysis Project (GTAP) at Purdue University provides a global set of social accounting matrices used by trade and environmental modelers throughout the world. However, there are several ways to extend the GTAP data set to make it more suitable for analysis of climate policy. We describe methods developed at Pacific Northwest National Laboratory for using and extending the GTAP data set as the foundation of an updated benchmark data set for the Second Generation Model (SGM). The data development process for SGM is under revision to (1) take advantage of economic data provided by the Global Trade Analysis Project; (2) allow for timely updates of the model base year; (3) enforce consistency with energy balances published by the International Energy Agency (IEA); and (4) maintain a role for international experts. For some types of global analysis, the GTAP data set may be sufficient. However, analysis of climate policy can benefit from a finer level of detail for fuels and energy processes than is available in GTAP. We demonstrate these procedures using the GTAP 6 data set and 2001 energy balances from the IEA. First, the IEA energy balances are aggregated to the desired set of fuels. Second, an aggregation of the GTAP data set is combined with the energy balances in a way that maintains strict adherence to IEA energy quantities and allows for additional energy carriers such as coke and heat. Third, the electricity generating sector is expanded into a set of generation technologies, including advanced technologies such as coal integrated gasification combined cycle (IGCC), and carbon dioxide capture and storage (CCS). Our objective is to automate the construction of a benchmark data set for the Second Generation Model for any desired country or aggregation of countries. The final data set takes the form of a “use table” which is essentially an input-output table with more production activities than intermediate goods. Anyone with subscriptions to the GTAP data set and to the IEA energy balances can use these procedures to construct a benchmark data set with an extended representation of the energy system.

Keywords: Environmental Economics and Policy; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Pages: 26
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:331629

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