Energy-economy linking in MARKAL-MACRO: interplay of nuclear, conservation and CO₂ policies in Sweden
by Ingrid Nystrom, Clas-Otto Wene
International Journal of Environment and Pollution (IJEP), Vol. 12, No. 2/3, 1999

Abstract: The interface between the energy system and the macroeconomy and the use of linked energy-economy models are studied. Linked systems-engineering and macroeconomic models (such as MARKAL-MACRO) are found to fill an important niche for national and regional energy systems analyses. The Reference Energy System is used to distinguish new analytical abilities with this type of energy-economy model. The properties of three descriptors used to model the interface are examined. The model is applied to three important policy issues in the Swedish energy system restrictions of CO₂ emissions, phasing out of nuclear power, and the availability of energy conservation. The main findings are: simultaneously restricting CO₂ emissions and phasing out nuclear power is very costly; the major part of the CO₂ reduction is accomplished by technological changes within the energy system; and the rebound effect of energy efficiency measures is larger with CO₂ restrictions than without.

Online publication date: Fri, 15-Aug-2003

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