Useful models for simulating policies to induce technological change

✍ Scribed by Nic Rivers; Mark Jaccard

• Publisher: Elsevier Science
• Year: 2006
• Tongue: English
• Weight: 289 KB
• Volume: 34
• Category: Article
• ISSN: 0301-4215
• DOI: 10.1016/j.enpol.2005.02.003

✦ Synopsis

Conventional top-down and bottom-up energy-economy models have limitations that affect their usefulness to policy-makers. Efforts to develop hybrid models, that incorporate valuable aspects of these two frameworks, may be more useful by representing technologies in the energy-economy explicitly while also representing more realistically the way in which businesses and consumers choose between those technologies. This representation allows for the realistic simulation of a wide range of technology-specific regulations and fiscal incentives alongside economy-wide fiscal incentives and disincentives. These policies can be assessed based on the costs required to reach a goal in the medium term, as well as on the degree to which they induce technological change that affects costs over long time periods.