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Technology Diffusion in Energy-Economy Models: The Case of Danish Vintage Models

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  • Henrik Klinge Jacobsen

Abstract

Technological progress is an important issue in long-term energy demand projections and in environmental analyses. Different assumptions on technological progress and diffusion of new technologies are among the reasons for diverging results obtained using bottom-up and top-down models for analysing the costs of greenhouse gas mitigation. This paper examines the effect on aggregate energy efficiency of using technological vintage models to describe technology diffusion. The focus is on short- to medium-term issues. Three different models of Danish energy supply and demand are used to illustrate the consequences of the vintage modelling approach. The fluctuating utilisation rates for power capacity in Denmark are found to have a significant impact on average fuel efficiencies. Diffusion of electric appliances is linked to economic activity and saturation levels for each appliance. In the sector of residential heat demand, fuel price increases are found to accelerate diffusion by increasing replacement rates for heating equipment.

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  • Henrik Klinge Jacobsen, 2000. "Technology Diffusion in Energy-Economy Models: The Case of Danish Vintage Models," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 43-71.
  • Handle: RePEc:aen:journl:2000v21-01-a02
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    Cited by:

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    6. Ruth, Matthias & Amato, Anthony, 2002. "Vintage structure dynamics and climate change policies: the case of US iron and steel," Energy Policy, Elsevier, vol. 30(7), pages 541-552, June.
    7. Zvingilaite, Erika & Klinge Jacobsen, Henrik, 2015. "Heat savings and heat generation technologies: Modelling of residential investment behaviour with local health costs," Energy Policy, Elsevier, vol. 77(C), pages 31-45.
    8. Hidalgo, Ignacio & Szabo, Laszlo & Carlos Ciscar, Juan & Soria, Antonio, 2005. "Technological prospects and CO2 emission trading analyses in the iron and steel industry: A global model," Energy, Elsevier, vol. 30(5), pages 583-610.
    9. Qizhen Wang & Rong Wang & Suxia Liu, 2024. "The reverse technology spillover effect of outward foreign direct investment, energy efficiency and carbon emissions," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 17013-17035, July.
    10. William X. Wei & Dezhi Chen & Daiping Hu, 2016. "Study on the Evolvement of Technology Development and Energy Efficiency—A Case Study of the Past 30 Years of Development in Shanghai," Sustainability, MDPI, vol. 8(5), pages 1-21, May.
    11. Bonilla, David & Akisawa, Atsushi & Kashiwagi, Takao, 2003. "Modelling the adoption of industrial cogeneration in Japan using manufacturing plant survey data," Energy Policy, Elsevier, vol. 31(9), pages 895-910, July.
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