CEEEA2.0 model: A dynamic CGE model for energy-environment-economy analysis with available data and code

Abstract

The computable general equilibrium (CGE) model is a good instrument for counterfactual analysis. This kind of model is widely used in energy and environmental economics. However, the CGE models used in different studies vary greatly. As the construction of the model is a massive project, and some model settings may be wrong, it is easy to get unreasonable equilibrium solutions. Another, the code and data of most CGE models are not transparent. This paper aims to break the barrier of the CGE model criticized as “black box” and provide researchers with a CGE model with available code and data: China Energy-Environment-Economic Analysis 2.0 (CEEEA2.0) model. Taking carbon tax and energy tax as examples, this paper analyzes the impact of carbon neutrality constraints on China from 2018 to 2060. Compared with the traditional CGE model, this paper describes energy and carbon emissions more closely, couples the environmental cost into the model more scientifically and the embodied carbon emissions in trade, and provides novel counterfactual analysis strategies. In addition, this paper introduces how to extend and adjust the model to facilitate the majority of modelers to build a CGE model according to different needs.