New documentation linking model

New documentation linking model

New documentation linking model

We are pleased to present the technical documentation of the linking the CGE model (d-PLACE) with models for the sectors: energy (MEESA), transport (TR3) and agriculture (EPICA) (Procedure for linking sectoral models with the CGE model), thus completing the available on on our website, a package of information about the tools used in the Center for Climate and Energy Analysis (CAKE).

Mechanisms driving emission reduction in individual sectors will not happen in isolation from the rest of the economy – the scale and the pace of emission reduction in one sector critically depend on changes in other sectors. For instance, expected reduction of emissions in manufacturing depends on the price of emission allowances, which, in turn, depends on the speed of diffusion of renewable energy sources and phase-out of coal power plants in electricity sector. On the other hand, the speed of fossil fuel power plants phase-out depends on demand for electricity, which is shaped by the speed of electrification of industry and transport. Similarly, the speed of electrification depends on price of electricity, which is determined by the technological changes in the power sector.

All these interactions between effects in different sectors must be considered in the analysis of climate policy in order to obtain a complete picture of its on impact on European economy. Reflecting all important interdependencies between sectors is not possible in single sectoral model. On the other hand, using a single multisector macroeconomic model (such as dPLACE) does not allow to consider all constraints and complex dynamics that are included in sectoral models. The optimal solution to this problem is building analysis on sectoral and macroeconomic models that are linked with each other. By providing a flow of information across all models in our toolbox and sequential solving we ensure that projections of each individual model is consistent with the projections of the remaining models. 

The documentation is available below: 

•   CAKE_Models_Linking_documentation.pdf (1.7 MiB, 914 hits)