Macroeconomic consistency issues in E3 modeling: The continued fable of the elephant and the rabbit - École des Ponts ParisTech Accéder directement au contenu
Article Dans Une Revue Energy Journal Année : 2006

Macroeconomic consistency issues in E3 modeling: The continued fable of the elephant and the rabbit

Résumé

Starting from a short presentation of the limits of using conventional production functions to hybridize energy-economy relationships, this paper presents a methodology aiming at a better integration of bottom-up policy scenarios in a top-down static general equilibrium framework. Along the lines of Ahmad's innovation possibility curve, the methodology consists in implementing top-down envelopes of production and demand functions, whose variable point elasticities of substitution provide a flexible interface for calibration on any bottom-up expertise. Numerical experiments assessing the impact of a rising carbon tax on the global 2030 economy compare the application of this methodology to that of two standard CES-based approaches. Results confirm that, in case of large departures from reference scenarios or of strong convexities in bottom-up results, the use of conventional CES production and utility functions may lead to a significant bias in cost assessment. Copyright © 2006 by the IAEE. All rights reserved.
Fichier non déposé

Dates et versions

hal-00716324 , version 1 (10-07-2012)

Identifiants

  • HAL Id : hal-00716324 , version 1

Citer

F. Ghersi, Jean Charles Hourcade. Macroeconomic consistency issues in E3 modeling: The continued fable of the elephant and the rabbit. Energy Journal, 2006, 27 (SPEC. ISS. OCT.), pp.39. ⟨hal-00716324⟩
148 Consultations
0 Téléchargements

Partager

Gmail Facebook X LinkedIn More