Energy and Climate Policy Analysis with the Hybrid Bottom-Up Computable General Equilibrium Model SCREEN: The Case of the Swiss CO2 Act

Authors: Kumbarogbrevelu G.1; Madlener R.2

Source: Annals of Operations Research, Volume 121, Numbers 1-4, July 2003 , pp. 181-203(23)

Publisher: Springer

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Abstract:

This paper shows how bottom-up activity analyses within a dynamic computable general equilibrium framework can be undertaken for the longer-term analysis of energy and climate policies using the model SCREEN [25]. In particular we demonstrate for the case of Switzerland how the impact of policy measures to reduce the carbon intensity of the energy sector can be assessed with such a model for various socio-economic and environmental dimensions (e.g., C02 emissions, GDP, employment, foreign exchange rate). The results can provide valuable insights for the appropriate design of energy or climate policies that allow for the targeted fostering of a more sustainable energy development.

Keywords: dynamic computable general equilibrium model; mixed complementarity problem; top-down bottom-up modeling; sustainable energy policy; climate change; environmental taxation; energy–economy interactions

Language: English

Document Type: Research article

Affiliations: 1: Department of Industrial Engineering, Bogbreveaziçi University, 3432 Bebek, Istanbul, Turkey gurkank@boun.edu.tr aziçi University, 3432 Bebek, Istanbul, Turkey gurkank@boun.edu.tr "> 2: CEPE – Centre for Energy Policy and Economics, Swiss Federal Institutes of Technology, ETH Zentrum WEC C25, CH-8092 Zurich, Switzerland madlener@cepe.mavt.ethz.ch

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