Energy-economy interactions revisited within a comprehensive sectoral model

摘要

This paper describes a computable general equilibrium (CGE) model with considerable sector and technology detail, the All Modular Industry Growth Assessment Model (AMIGA). It is argued that a detailed model is important to capture and understand the several roles that energy plays within the economy. Fundamental consumer and industrial demands are for the services from energy; hence, energy demand is a derived demand based on the need for heating, cooling, mechanical, electrical, and transportation services. Technologies that provide energy-services more efficiently (on a life cycle basis), when adopted, result in increased future output of the economy and higher paths of household consumption. The AMIGA model can examine the effects on energy use and economic output of increases in energy prices (e.g., a carbon charge) and other incentive-based policies or energy-efficiency programs. Energy sectors and sub-sector activities included in the model involve energy extraction, conversion, and transportation. There are business opportunities to produce energy-efficient goods (i.e., appliances, control systems, buildings, automobiles, clean electricity). These activities are represented in the model by characterizing their likely production processes (e.g., lighter weight motor vehicles). Also, multiple industrial processes can produce the same output but with different technologies and inputs. Secondary recovery, i.e., recycling processes, are examples of these multiple processes. Combined heat and power (CHP) is also represented for energy-intensive industries. Other modules represent residential and commercial building technologies to supply energy services. All sectors of the economy command real resources (capital services and labor).