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Where Are the Industrial Technologies in Energy-Economy Models?: An Innovative CGE Approach for Steel Production in Germany

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dc.creator Schumacher, Katja
dc.creator Sands, Ronald D.
dc.date 2006
dc.date.accessioned 2013-10-16T07:00:20Z
dc.date.available 2013-10-16T07:00:20Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/18498
dc.identifier ppn:514845023
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/18498
dc.description Top-down computable general equilibrium (CGE) models are used extensively for analysis of energy and climate policies. Energy-intensive industries are usually represented in top-down economic models as abstract economic production functions, of the constant-elasticity-ofsubstitution (CES) functional form. This study explores methods for improving the realism of energy-intensive industries in top-down economic models. We replace the CES production function with a set of specific technologies and provide a comparison between the traditional production function approach in CGE models and an approach with separate technologies for making iron and steel. In particular, we investigate the response of the iron and steel sector to a set of CO2 price scenarios. Our technology-based, integrated approach permits a choice between several technologies for producing iron and steel and allows for shifts in technology characteristics over time towards best practice, innovative technologies. In addition, the general equilibrium framework allows us to analyze interactions between production sectors, for example between electricity generation and iron and steel production, investigate simultaneous economy-wide reactions and capture the main driving forces of greenhouse gas emissions reductions under a climate policy. We conclude that technology specific effects are crucial for the economic assessment of climate policies, in particular the effects relating to process shifts and fuel input structure.
dc.language eng
dc.publisher Deutsches Institut für Wirtschaftsforschung (DIW) Berlin
dc.relation DIW-Diskussionspapiere 605
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject C6
dc.subject L6
dc.subject D5
dc.subject Q5
dc.subject Q4
dc.subject ddc:330
dc.subject Industrial technologies
dc.subject energy use
dc.subject iron and steel production
dc.subject technological change
dc.subject general equilibrium modeling
dc.subject Energiekonsum
dc.subject Stahlindustrie
dc.subject Produktionsfunktion
dc.subject Technischer Fortschritt
dc.subject Allgemeines Gleichgewicht
dc.subject Deutschland
dc.title Where Are the Industrial Technologies in Energy-Economy Models?: An Innovative CGE Approach for Steel Production in Germany
dc.type doc-type:workingPaper


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