Template-Type: ReDIF-Article 1.0
Author-Name:  Christoph Bohringer and Andreas Loschel
Title:  Promoting Renewable Energy in Europe: A Hybrid Computable General Equilibrium Approach
Classification-JEL: F0
Pages:  135-150
Volume:  Hybrid Modeling
Issue:  Special Issue #2
Year:  2006
Abstract:  We illustrate the use of a large-scale computable general equilibrium model to investigate the economic and environmental effects of renewable energy promotion within the European Union. Our hybrid model incorporates the technological explicitness of bottom-up energy system models for the electricity sector while production possibilities in other sectors are described at an aggregate level through top-down constant-elasticities-of-substitution (transformation) functions. The discrete activity analysis of technology options within conventional top-down computable general equilibrium models is possible when adopting the so-called mixed complementarity problem approach Ð a flexible mathematical representation of market equilibrium conditions which accommodates weak inequalities and complementary slackness. 
Handle: RePEc:aen:journl:2006SE_Jaccard-a07
File-URL: http://www.iaee.org/en/publications/ejarticle.aspx?id=2171
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