GTAP-E-Power: An Electricity-detailed Economy-wide Model

Abstract

Global economic analysis of energy and climate policy often uses an aggregate representation of the electricity sector (e.g., GTAP-E). However, disproportionate technological progress and policies across different generating technologies requires a more detailed representation that identifies and allows for substitution between generating technologies. GTAP-E-Power extends the GTAP-E model to include transmission and distribution as well as substitution between nuclear, coal, gas base load, gas peak load, oil base load, oil peak load, hydro base load, hydro peak load, wind, solar, and 'other' power. Electric power substitution is represented with a nested additive constant elasticity of substitution which, opposed to the traditional constant elasticity of substitution, ensures that the sum of demands for generation from each technology is equal to total demand for electricity generation. The primary purpose of GTAP-E-Power is to serve as guidance for implementing the GTAP-Power Data Base in a computable general equilibrium model with substitution between electricity generating technologies to inform economic, energy, and climate policy.