Multi-regional MARKAL-MACRO model to study an international market of CO(sub 2) emission permits. A detailed analysis of a burden sharing strategy among the Netherlands, Sweden and Switzerland

摘要

The development of a multi-regional MARKAL-MACRO (mMM) model and associated solution techniques have been actively continued during the first year (July 1996 - June 1997) of the IEA/ETSAP/Annex VI. This has been a joint research effort between: - the Systems Analysis Section of the Paul Scherrer Institute (PSI), - the Inst. for Operations Research (IFOR) of the Swiss Federal Inst. of Technology at Zurich, - the Logistics Lab. (Logilab) of the Univ. of Geneva, and - the different ETSAP partners that provide the regional MARKAL-MACRO (MM) models. This report intends to give an update on the development of mMM and associated solution techniques, highlighting the progress made since July 1996. It details also first JI study performed with mMM. The mMM model enables one to study an international co-operation to curb jointly carbon dioxide (CO(sub 2)) emissions through a market of emission permits, and to evaluate the economic implications of co-ordinating abatement policies on the participating regions. Along with emission permits, the regions may exchange other goods. So far, only an aggregate good in monetary unit has been considered. The mMM model integrates regional MM models into a meta-modelling framework. This integration can be done following two equivalent alternatives: mMM can be formulated either with market equilibrium conditions, or with an aggregated utility function and a global excess constraint. In both alternatives, regional MM models have to be extended by coherent budget and/or trade relationships. A first coding of a mMM model with three countries had been done in GAMS. Work has been done to generalise this coding to consider more traded goods and more countries. To solve mMM, two alternative mathematical methods can be used. The first one considers mMM formulated with market equilibrium conditions, and solves it as a variational inequality problem using a cutting plane algorithm. The second one considers mMM formulated with an aggregated utility function, and solves it using a Negishi algorithm. (author) 16 figs., 9 tabs., refs.