Energy conversion - AIM-Hub
|Institution||National Institute for Environmental Studies (NIES), Japan, .|
|Solution concept||General equilibrium (closed economy)|
AIM/CGE includes petroleum refinery, coal transformation, biomass transformation, town gas, and power generation sectors. Energy conversion occurs in production sectors. The share of energy consumed by a particular source of power generation is determined by a logit function which is often used for selection of several alternatives (https://en.wikipedia.org/wiki/Logit). Biomass transformation is also included in biofuels. Almost all sectors can install carbon capture and storage (CCS) as one of their CO2 emission-reduction measures, with the exception of town gas.
There are sectors which provide CCS service to corresponding sectors (coal power generation) and they install at certain carbon price level. The input of all energy conversion sectors is formulated as a Leontief-type production function (fixed input-output coefficient) to deal appropriately with the energy balance condition or energy conversion factor.