Energy demand - ENV-Linkages
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The consumer demand system is thus implemented as a nested structure that starts with disposable income. A top nest allocates disposable income between savings and consumer commodities. Each commodity is decomposed into demand for the various product commodities, using a series of nested CES functions. The top CES nest decomposes demand for a commodity into a non-energy aggregate bundle and an energy bundle. The former is decomposed into demand for non-energy Armington goods with a single nest (and added across all consumer goods). The latter is decomposed using the same energy nesting as in production with energy demand similarly aggregated across all consumer goods to generate total energy demand by carrier by households.
Note: The documentation of ENV-Linkages is 'in preparation' and is not yet 'published'!| Corresponding documentation | |
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| Previous versions | |
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| 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. |