In a climate constrained future, hybrid energy-economy model coupling
gives additional insight into interregional competition, trade, industrial delocalisation
and overall macroeconomic consequences of decarbonising the energy system.
Decarbonising the energy system is critical in mitigating climate change. This
chapter summarises modelling methodologies developed in the ETSAP community to assess economic impacts of decarbonising energy systems at a national level.
The preceding chapter focuses on a global perspective. The modelling studies
outlined here show that burden sharing rules and national revenue recycling
schemes for carbon tax are critical for the long-term viability of economic growth
and equitable engagement on combating climate change. Traditional computable
general equilibrium models and energy systems models solved in isolation can
misrepresent the long run carbon cost and underestimate the demand response
caused by technological paradigm shifts in a decarbonised energy system. The
approaches outlined within have guided the first evidence based decarbonisation
legislation and continue to provide additional insights as increased sectoral disaggregation
in hybrid modelling approaches is achieved.
|Title of host publication||Informing Energy and Climate Policies Using Energy Systems Models : Insights from Scenario Analysis Increasing the Evidence Base|
|Publication status||Published - 2015|
|Series||Lecture Notes in Energy|