Economic activity - EPPA - Revision history

Sergey Paltsev at 16:14, 12 July 2022

2022-07-12T16:14:15Z

← Older revision		Revision as of 18:14, 12 July 2022
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	The social-economic drivers of EPPA also include a set of endogenously determined variables, which consist of savings, investment, resource depletion of fossil fuels, and the evolution of technology specific factor (a.k.a. fixed factor) for each backstop technology. Savings provide funds for investment, which increases the output of the following period. On the other hand, the use of fossil fuels in the current period decreases the resources available for future consumption. In addition, EPPA considers the technology specific factor to model the introduction of a backstop technology. The limited supply of ~~a technology specific~~ factor at the beginning captures the phenomenon that costs of operating a new technology tend to be higher when the technology is at the early stage of introduction, but the costs may go down gradually with learning-by-doing, knowledge accumulation, etc. The parameterization of technology specific factors is based on empirical evidence presented in Morris et al. (2019) <ref>Morris, J.F., J.M. Reilly and Y-H. H. Chen (2019). “Advanced Technologies in Energy-Economy Models for Climate Change Assessment.” Energy Economics, 80 (476-490) (doi: 10.1016/j.eneco.2019.01.034).</ref>.		The social-economic drivers of EPPA also include a set of endogenously determined variables, which consist of savings, investment, resource depletion of fossil fuels, and the evolution of technology specific factor (a.k.a. fixed factor) supply for each backstop technology. Savings provide funds for investment, which increases the output of the following period. On the other hand, the use of fossil fuels in the current period decreases the resources available for future consumption. In addition, EPPA considers the technology specific factor to model the introduction of a backstop technology. The limited supply of the factor at the beginning captures the phenomenon that costs of operating a new technology tend to be higher when the technology is at the early stage of introduction, but the costs may go down gradually with learning-by-doing, knowledge accumulation, etc. The parameterization of technology specific factors is based on empirical evidence presented in Morris et al. (2019) <ref>Morris, J.F., J.M. Reilly and Y-H. H. Chen (2019). “Advanced Technologies in Energy-Economy Models for Climate Change Assessment.” Energy Economics, 80 (476-490) (doi: 10.1016/j.eneco.2019.01.034).</ref>.

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Sergey Paltsev at 16:11, 12 July 2022

2022-07-12T16:11:08Z

← Older revision		Revision as of 18:11, 12 July 2022
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	The social-economic drivers of EPPA also include a set of variables ~~solved endogenously by the model~~, which consist of savings, investment, resource depletion of fossil fuels, and the evolution of technology specific factor (a.k.a. fixed factor) for each backstop technology. Savings provide funds for investment, which increases the output of the following period. On the other hand, the use of fossil fuels in the current period decreases the resources available for future consumption. In addition, EPPA considers the technology specific factor to model the introduction of a backstop technology. The limited supply of a technology specific factor at the beginning captures the phenomenon that costs of operating a new technology tend to be higher when the technology is at the early stage of introduction, but the costs may go down gradually with learning-by-doing, knowledge accumulation, etc. The parameterization of technology specific factors is based on empirical evidence presented in Morris et al. (2019) <ref>Morris, J.F., J.M. Reilly and Y-H. H. Chen (2019). “Advanced Technologies in Energy-Economy Models for Climate Change Assessment.” Energy Economics, 80 (476-490) (doi: 10.1016/j.eneco.2019.01.034).</ref>.		The social-economic drivers of EPPA also include a set of endogenously determined variables, which consist of savings, investment, resource depletion of fossil fuels, and the evolution of technology specific factor (a.k.a. fixed factor) for each backstop technology. Savings provide funds for investment, which increases the output of the following period. On the other hand, the use of fossil fuels in the current period decreases the resources available for future consumption. In addition, EPPA considers the technology specific factor to model the introduction of a backstop technology. The limited supply of a technology specific factor at the beginning captures the phenomenon that costs of operating a new technology tend to be higher when the technology is at the early stage of introduction, but the costs may go down gradually with learning-by-doing, knowledge accumulation, etc. The parameterization of technology specific factors is based on empirical evidence presented in Morris et al. (2019) <ref>Morris, J.F., J.M. Reilly and Y-H. H. Chen (2019). “Advanced Technologies in Energy-Economy Models for Climate Change Assessment.” Energy Economics, 80 (476-490) (doi: 10.1016/j.eneco.2019.01.034).</ref>.

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Sergey Paltsev at 22:04, 11 July 2022

2022-07-11T22:04:29Z

← Older revision		Revision as of 00:04, 12 July 2022
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	The social-economic drivers of EPPA also include a set of variables solved endogenously by the model, which consist of savings, investment, resource depletion of fossil fuels, and the evolution of technology specific factor (a.k.a. fixed factor) for each backstop technology. Savings provide funds for investment, which increases the output of the ~~next~~ period. On the other hand, the use of fossil fuels in the current period decreases the resources available for future consumption. In addition, EPPA considers the technology specific factor to model the introduction of a backstop technology. The limited supply of a technology specific factor at the beginning captures the phenomenon that costs of operating a new technology tend to be higher when the technology is at the early stage of introduction, but the costs may go down gradually with learning-by-doing, knowledge accumulation, etc. The parameterization of technology specific factors is based on empirical evidence presented in Morris et al. (2019) <ref>Morris, J.F., J.M. Reilly and Y-H. H. Chen (2019). “Advanced Technologies in Energy-Economy Models for Climate Change Assessment.” Energy Economics, 80 (476-490) (doi: 10.1016/j.eneco.2019.01.034).</ref>.		The social-economic drivers of EPPA also include a set of variables solved endogenously by the model, which consist of savings, investment, resource depletion of fossil fuels, and the evolution of technology specific factor (a.k.a. fixed factor) for each backstop technology. Savings provide funds for investment, which increases the output of the following period. On the other hand, the use of fossil fuels in the current period decreases the resources available for future consumption. In addition, EPPA considers the technology specific factor to model the introduction of a backstop technology. The limited supply of a technology specific factor at the beginning captures the phenomenon that costs of operating a new technology tend to be higher when the technology is at the early stage of introduction, but the costs may go down gradually with learning-by-doing, knowledge accumulation, etc. The parameterization of technology specific factors is based on empirical evidence presented in Morris et al. (2019) <ref>Morris, J.F., J.M. Reilly and Y-H. H. Chen (2019). “Advanced Technologies in Energy-Economy Models for Climate Change Assessment.” Energy Economics, 80 (476-490) (doi: 10.1016/j.eneco.2019.01.034).</ref>.

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Sergey Paltsev at 22:03, 11 July 2022

2022-07-11T22:03:53Z

← Older revision		Revision as of 00:03, 12 July 2022
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	The social-economic drivers of EPPA also include a set of variables solved endogenously by the model, which consist of savings, investment, resource depletion of fossil fuels, and the evolution of technology specific factor (a.k.a. fixed factor) for each backstop technology. Savings provide funds for investment, which increases the output of the next period. On the other hand, the use of fossil fuels in the current period decreases the resources available for ~~the~~ consumption ~~in the future~~. In addition, EPPA considers the technology specific factor to model the introduction of a backstop technology. The limited supply of ~~the~~ technology specific factor at the ~~early stage of introducing the new technology~~ captures the phenomenon that ~~the~~ costs of operating ~~the~~ new technology tend to be higher at the ~~beginning~~, but the costs may go down gradually with learning-by-doing, knowledge accumulation, etc. The parameterization of technology specific factors is based on ~~the~~ empirical ~~study~~ presented in Morris et al. (2019) <ref>Morris, J.F., J.M. Reilly and Y-H. H. Chen (2019). “Advanced Technologies in Energy-Economy Models for Climate Change Assessment.” Energy Economics, 80 (476-490) (doi: 10.1016/j.eneco.2019.01.034).</ref>.		The social-economic drivers of EPPA also include a set of variables solved endogenously by the model, which consist of savings, investment, resource depletion of fossil fuels, and the evolution of technology specific factor (a.k.a. fixed factor) for each backstop technology. Savings provide funds for investment, which increases the output of the next period. On the other hand, the use of fossil fuels in the current period decreases the resources available for future consumption. In addition, EPPA considers the technology specific factor to model the introduction of a backstop technology. The limited supply of a technology specific factor at the beginning captures the phenomenon that costs of operating a new technology tend to be higher when the technology is at the early stage of introduction, but the costs may go down gradually with learning-by-doing, knowledge accumulation, etc. The parameterization of technology specific factors is based on empirical evidence presented in Morris et al. (2019) <ref>Morris, J.F., J.M. Reilly and Y-H. H. Chen (2019). “Advanced Technologies in Energy-Economy Models for Climate Change Assessment.” Energy Economics, 80 (476-490) (doi: 10.1016/j.eneco.2019.01.034).</ref>.

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Sergey Paltsev at 21:53, 11 July 2022

2022-07-11T21:53:54Z

← Older revision		Revision as of 23:53, 11 July 2022
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	The social-economic drivers of EPPA also include a set of variables solved endogenously by the model, which consist of savings, investment, resource depletion of fossil fuels, and the evolution of technology specific factor (a.k.a. fixed factor) for each backstop technology. Savings provide funds for investment, which increases the output of the next period. On the other hand, the use of fossil fuels in the current period decreases the resources available for the consumption in the future. In addition, EPPA considers the technology specific factor to model the introduction of a ~~new/~~backstop technology. The limited supply of the technology specific factor at the early stage of introducing the ~~backstop~~ technology captures the phenomenon that the costs of operating the new technology tend to be higher at the beginning, but the costs may go down gradually with learning-by-doing, knowledge accumulation, etc. The parameterization of technology specific factors is based on the empirical study presented in Morris et al. (2019) <ref>Morris, J.F., J.M. Reilly and Y-H. H. Chen (2019). “Advanced Technologies in Energy-Economy Models for Climate Change Assessment.” Energy Economics, 80 (476-490) (doi: 10.1016/j.eneco.2019.01.034).</ref>.		The social-economic drivers of EPPA also include a set of variables solved endogenously by the model, which consist of savings, investment, resource depletion of fossil fuels, and the evolution of technology specific factor (a.k.a. fixed factor) for each backstop technology. Savings provide funds for investment, which increases the output of the next period. On the other hand, the use of fossil fuels in the current period decreases the resources available for the consumption in the future. In addition, EPPA considers the technology specific factor to model the introduction of a backstop technology. The limited supply of the technology specific factor at the early stage of introducing the new technology captures the phenomenon that the costs of operating the new technology tend to be higher at the beginning, but the costs may go down gradually with learning-by-doing, knowledge accumulation, etc. The parameterization of technology specific factors is based on the empirical study presented in Morris et al. (2019) <ref>Morris, J.F., J.M. Reilly and Y-H. H. Chen (2019). “Advanced Technologies in Energy-Economy Models for Climate Change Assessment.” Energy Economics, 80 (476-490) (doi: 10.1016/j.eneco.2019.01.034).</ref>.

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Sergey Paltsev at 21:52, 11 July 2022

2022-07-11T21:52:25Z

← Older revision		Revision as of 23:52, 11 July 2022
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	The social-economic drivers of EPPA also include a set of variables solved endogenously by the model, which consist of savings, investment, resource depletion, and the evolution of technology specific factor (a.k.a. fixed factor) for each backstop technology.		The social-economic drivers of EPPA also include a set of variables solved endogenously by the model, which consist of savings, investment, resource depletion of fossil fuels, and the evolution of technology specific factor (a.k.a. fixed factor) for each backstop technology. Savings provide funds for investment, which increases the output of the next period. On the other hand, the use of fossil fuels in the current period decreases the resources available for the consumption in the future. In addition, EPPA considers the technology specific factor to model the introduction of a new/backstop technology. The limited supply of the technology specific factor at the early stage of introducing the backstop technology captures the phenomenon that the costs of operating the new technology tend to be higher at the beginning, but the costs may go down gradually with learning-by-doing, knowledge accumulation, etc. The parameterization of technology specific factors is based on the empirical study presented in Morris et al. (2019) <ref>Morris, J.F., J.M. Reilly and Y-H. H. Chen (2019). “Advanced Technologies in Energy-Economy Models for Climate Change Assessment.” Energy Economics, 80 (476-490) (doi: 10.1016/j.eneco.2019.01.034).</ref>.

	~~2) a set~~ of ~~factors determined by~~ the ~~model dynamics, which encompass savings, investment~~, fossil ~~fuel resource depletion~~, ~~and~~ the ~~evolution~~ of technology specific factor ~~for each~~ backstop technology. ~~While~~ the ~~Hick’s neutral productivity levels are held constant across scenarios~~, ~~changes~~ in ~~prices and model dynamics will determine levels of variables such as resource allocations~~, ~~sectoral outputs and GDP~~.

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Sergey Paltsev at 21:33, 11 July 2022

2022-07-11T21:33:36Z

← Older revision		Revision as of 23:33, 11 July 2022
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			The social-economic drivers of EPPA also include a set of variables solved endogenously by the model, which consist of savings, investment, resource depletion, and the evolution of technology specific factor (a.k.a. fixed factor) for each backstop technology.

	2) a set of factors determined by the model dynamics, which encompass savings, investment, fossil fuel resource depletion, and the evolution of technology specific factor for each backstop technology. While the Hick’s neutral productivity levels are held constant across scenarios, changes in prices and model dynamics will determine levels of variables such as resource allocations, sectoral outputs and GDP.		2) a set of factors determined by the model dynamics, which encompass savings, investment, fossil fuel resource depletion, and the evolution of technology specific factor for each backstop technology. While the Hick’s neutral productivity levels are held constant across scenarios, changes in prices and model dynamics will determine levels of variables such as resource allocations, sectoral outputs and GDP.

Sergey Paltsev at 21:22, 11 July 2022

2022-07-11T21:22:36Z

← Older revision		Revision as of 23:22, 11 July 2022
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	The key socio-economic driver of EPPA is the Hick’s neutral productivity growth, which is calibrated to match a baseline GDP growth trajectory under 1) a set of exogenously given factors, including labor endowment growth, which is assumed to increase proportionally to the population growth and autonomous energy efficiency improvement (AEEI), and 2) a set of factors determined by the model dynamics, which encompass savings, investment, fossil fuel resource depletion, and the evolution of technology specific factor for each backstop technology. While the Hick’s neutral productivity levels are held constant across scenarios, changes in prices and model dynamics will determine levels of variables such as resource allocations, sectoral outputs and GDP.		2) a set of factors determined by the model dynamics, which encompass savings, investment, fossil fuel resource depletion, and the evolution of technology specific factor for each backstop technology. While the Hick’s neutral productivity levels are held constant across scenarios, changes in prices and model dynamics will determine levels of variables such as resource allocations, sectoral outputs and GDP.

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Sergey Paltsev at 20:18, 11 July 2022

2022-07-11T20:18:57Z

← Older revision		Revision as of 22:18, 11 July 2022
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			The key socio-economic driver of EPPA is the Hick’s neutral productivity growth, which is calibrated to match a baseline GDP growth trajectory under 1) a set of exogenously given factors, including labor endowment growth, which is assumed to increase proportionally to the population growth and autonomous energy efficiency improvement (AEEI), and 2) a set of factors determined by the model dynamics, which encompass savings, investment, fossil fuel resource depletion, and the evolution of technology specific factor for each backstop technology. While the Hick’s neutral productivity levels are held constant across scenarios, changes in prices and model dynamics will determine levels of variables such as resource allocations, sectoral outputs and GDP.

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Mathijs Harmsen: Edited automatically from page EPPA setup.

2020-05-02T15:05:32Z

Edited automatically from page EPPA setup.

New page

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