Title: Representing technology in CGE models: a comparison of SGM and AMIGA for electricity sector CO2 mitigation

Authors: Michael G. Shelby, Allen A. Fawcett, O. Eric Smith, Donald A. Hanson, Ronald D. Sands

Addresses: US Environmental Protection Agency, 1200 Pennsylvania Avenue, NW (6401A), Washington DC, 20460, USA. ' US Environmental Protection Agency, 1200 Pennsylvania Ave. NW (6207J), Washington DC, 20460, USA. ' US Environmental Protection Agency, 1200 Pennsylvania Ave. NW (6207J), Washington DC, 20460, USA. ' Argonne National Laboratory, 9700 S. Cass Avenue, Argonne, IL 60439, USA. ' Joint Global Change Research Institute, Pacific Northwest National Laboratory, 8400 Baltimore Ave., Suite 201, College Park, MD 20740, USA

Abstract: The goal of this effort is to compare two climate economic models – the Second Generation Model (SGM) and All Modular Industry Growth Assessment Model (AMIGA) – and highlight the consequences of different modelling approaches and structures on the estimation of climate change policy results. We show that different assumptions about how technology choices are made in the US electricity sector in response to a carbon charge can lead to differences in estimates of environmental, fuel market, and economy-wide impacts. If the differences among models can be better understood, improvements in the models may be made and policy makers will be better informed by the insights provided by the models.

Keywords: climate economics modelling; USA; United States; electricity sector technologies; renewable energy; energy sector investment; climate change policy; technology choices; carbon dioxide mitigation; computable general equilibrium; CGE models.

DOI: 10.1504/IJETP.2008.019953

International Journal of Energy Technology and Policy, 2008 Vol.6 No.4, pp.323 - 342

Available online: 18 Aug 2008

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