Existence and Uniqueness of Solutions from the LEAP Equilibrium Energy-Economy Model

摘要

A study was made of the existence and uniqueness of solutions to the long-range, energy-economy model LEAP. The code is a large scale, long-range (50 year) equilibrium model of energy supply and demand in the US economy used for government and industrial forecasting. The study focused on the two features which distinguish LEAP from other equilibrium models - the treatment of product allocation and basic conversion of materials into an energy end product. Both allocation and conversion processes are modeled in a behavioral fashion which differs from classical economic paradigms. The results of the study indicate that while LEAP contains desirable behavioral features, these same features can give rise to non-uniqueness in the solution of allocation and conversion process equations. Conditions under which existence and uniqueness of solutions might not occur are developed in detail and their impact in practical applications are discussed. (ERA citation 08:002373)