Electricity - ENV-Linkages
One of the features of the model is that it integrates the new GTAP power database that disaggregates GTAP's electricity sector ('ely') into 11 different power sources plus electricity transmission and distribution. Though the database has both the supply and demand side for all 11 power sources, the aggregation facility permits the aggregation of electricity demand into a single commodity and the 'make' matrix specification combines the output from the different power activities into a single electricity commodity.
The bundling of electricity uses a nested CES structure instead of a single nest. The top nest combines aggregate power supply with distribution and transmission services to form aggregate domestic electric supply. The power nest combines a number of different (and user-determined) power bundles. Subsequently, each of these power bundles are formed by the different power activities that are segmented into the different power bundles (under user-mapping). For example, the power bundles may be composed of coal-, oil- and gas-generation, nuclear, and all other. Using the GTAP power database, base load coal could be mapped to the coal power bundle, base and peak load oil could be mapped to the oil power bundle, base and peak load gas could be mapped to the gas power bundle, base load nuclear would be mapped to the nuclear power bundle, and all other power activities (wind, solar, hydro and other) could be mapped to the other power bundle. The strategy for future technologies would be to bundle them in power bundles. For example, coal capture and storage could be in the coal power bundle, and advanced nuclear could be incorporated in the nuclear power bundle.
Note: The documentation of ENV-Linkages is 'in preparation' and is not yet 'published'!| Corresponding documentation | |
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| Previous versions | |
| No previous version available | |
| Model information | |
| Model link | |
| Institution | Organisation for Economic Co-operation and Development (OECD), France, https://www.oecd.org/. |
| Solution concept | General equilibrium (closed economy) |
| Solution method | Optimization |
| Anticipation | The ENV-Linkages model is a recursive dynamic neo-classical general equilibrium model, meaning that decision-makers do not know the future when making a decision today. After it solves each period, the model then uses the resulting state of the world, including the consequences of decisions made in that period - such as resource depletion, capital stock retirements and installations, and changes to the landscape - and then moves to the next time step and performs the same exercise. |