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GTAP Resource #3114

"Dynamic (GTAP) model and baseline for energy and environment issues"
by Niemi, Janne

This paper presents a modified version of the dynamic GTAP-model and a long-run baseline, constructed particularly for analysis of energy and environment issues. The model incorporates CO2 emissions accounting and trading, as well as substitution between alternative forms of energy following the principles introduced in the GTAP-E model. The baseline includes, apart from the standard macroeconomic projections, assessments of new technologies enhancing energy use and production. Some example simulations illustrating the effects of alternative growth assumptions using the model and baseline are also given.

The additional model features are implemented in a manner that allows flexibility with regard to sector and region aggregation and the sets of energy commodities. Whilst the basic principle builds primarily on the solutions incorporated in the GTAP-E model, changes are made to the defining of additional sets and, more importantly, to the treatment of emissions trade participation. This is required to enable gradual extension of trading area and flexible simulation of alternative policy options. An attempt is also made to extend the energy commodities to alternative sources, especially biofuel, as GTAP data provides an excellent framework for analysing the topical issues related to energy and food supply.

The macroeconomic variables for a long-run baseline, reaching up to year 2050, are compiled from various international sources and calibrated. These variables include projections for population, skilled and unskilled labour force, and total factor productivity. In addition, with help of energy technology systems models, estimates are produced for increase in energy efficiency and for technological change enhancing energy production.

Resource Details (Export Citation) GTAP Keywords
Category: 2009 Conference Paper
Status: Published
By/In: Presented at the 12th Annual Conference on Global Economic Analysis, Santiago, Chile
Date: 2009
Created: Niemi, J. (4/15/2009)
Updated: Niemi, J. (4/15/2009)
Visits: 2,804
- Technological change
- Dynamic modeling
- Baseline development

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Comments (1 posted)
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Posted by: Tayyab, Syed Muhammad Usman   11/18/2019 12:01:00 PM
from where we can access the Associated files and tools mentioned in the paper ?