Energy - AIM-Hub
|Institution||National Institute for Environmental Studies (NIES), Japan, .|
|Solution concept||General equilibrium (closed economy)|
AIM/CGE is a computable general equilibrium model which deals with detailed sectoral representation in energy sectors. The energy demand is determined by production function in industrial activities and consumption function in the household sector. The industrial activities have substitution between energy and value-added and household consumption is formulated by LES (Linear Expenditure System) function. The fossil resource cost is associated with cumulative resource extraction. The energy transformation sectors are represented by multi power generation sectors and refineries for oil and biomass.
AIM/CGE covers all greenhouse gas (GHG)-emitting sectors, including energy, industrial processes as well as agriculture and forestry. The emissions of the full basket of greenhouse gases including CO2, CH4, N2O and F-gases (CF4, C2F6, HFC125, HFC134a, HFC143a, HFC227ea, HFC245ca and SF6) as well as other radiatively active gases, such as NOx, volatile organic compounds (VOCs), CO, SO2, and BC/OC is represented in the model. AIM/CGE is used in conjunction with MAGICC (Model for Greenhouse gas Induced Climate Change) (cf. Section Climate of AIM-Hub) for calculating atmospheric concentrations, radiative forcing, and annual-mean global surface air temperature increase.