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GTAP Resource #4864

"A Hybrid Energy-Economy Model for Global Integrated Assessment of Climate Change, Carbon Mitigation and Energy Transformation"
by Cai, Yiyong, David Newth, John Finnigan and Don Gunasekera

This paper introduces the design of the CSIRO variant of the Global Trade and Environment model (GTEM-C), and its application in the global integrated assessment modelling (GIAM) framework.

The GIAM framework started with the original Global Trade and Environment Model (GTEM) as its economic core. However, the original GTEM model is based on the Global Trade Analysis Project (GTAP) model versions 4.1, which suffers from defects in the regional household demand system. Additionally, the “technology bundle” approach that GTEM uses to model the energy-intensive sectors is based on outdated data source and ad hoc selection of parameters. Most importantly, although the original GTEM model features disaggregated modelling of the electricity sector, it does not account for global energy flows embedded in fossil fuels such as coal, oil and gas. These drawbacks of the model make GTEM less capable of meeting the emerging needs of global energy and environmental research, particularly around the needs of the new generation of Climate and Earth System Models.

Over the last few years, an interdisciplinary team of CSIRO climate scientists and economists have developed a hybrid model that combines the top-down macroeconomic representation of a computable general equilibrium (CGE) model with the bottom-up engineering details of energy production and consumption. This model builds upon the global trade and economic core of GTAP, and has inherited the “technology bundle” approach of GTEM for modelling heterogeneous electricity technologies. To explicitly recognise its connection with the original GTEM, this hybrid model is named as the CSIRO variant of the Global Trade and Environment model (GTEM-C).

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Published
By/In: Applied Energy
Date: 2015
Version: working paper version
Created: Cai, Y. (2/9/2016)
Updated: Cai, Y. (2/10/2016)
Visits: 2,539
- Dynamic modeling
- Climate change policy
- Climate impacts

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