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

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  • Jia, Zhijie
  • Lin, Boqiang

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.

Suggested Citation

  • Jia, Zhijie & Lin, Boqiang, 2022. "CEEEA2.0 model: A dynamic CGE model for energy-environment-economy analysis with available data and code," Energy Economics, Elsevier, vol. 112(C).
    • Handle: RePEc:eee:eneeco:v:112:y:2022:i:c:s0140988322002766
    DOI: 10.1016/j.eneco.2022.106117
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    More about this item

    Keywords

    Computable General Equilibrium (CGE) model; China-Energy-Environment-Economy Analysis (CEEEA); Available data and code; Carbon neutrality; Carbon tax;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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