Energy-Economy-Environment Interaction Using OLG Framework: Evaluation of Alternative Policies under Demographic Transition

Ebru Voyvoda

No 332376, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: This paper presents a multi-sectoral, large-scale OLG model calibrated to a developed (German) and a developing (Turkish) economy, including details on demographic structure, age-dependent consumption patterns, government taxes and expenditures and energy production. The model, based on the seminal work of Auerbach and Kotlikoff (1987) closely follows Rutherford, Böhringer and Pahlke (1999) and Rasmussen (2003) by its representation of energy-related activities and environmental variables. The model is then used (i) to study the effects of demographic transition on the energy demand and GHG emissions (ii) to study the effect of alternative policies under agedependent consumption structures, within a dynamic general equilibrium framework. The results emphasize that life-cycle of consumers and the demographic structure of a society play an important role in OLG analysis of energy-economy-environment relations.

Keywords: Resource/Energy Economics and Policy; Environmental Economics and Policy (search for similar items in EconPapers)
Pages: 27
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:332376

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