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The National Energy Modeling System: A Large-Scale Energy-Economic Equilibrium Model

Author

Listed:
  • Steven A. Gabriel

    (University of Maryland, College Park, Maryland 20742)

  • Andy S. Kydes

    (Energy Information Administration, U.S. Department of Energy, Washington, DC)

  • Peter Whitman

    (Pace Global Energy Services, Fairfax, Virginia)

Abstract

The National Energy Modeling System (NEMS) is a large-scale mathematical model that computes equilibrium fuel prices and quantities in the U.S. energy sector and is currently in use at the U.S. Department of Energy (DOE). At present, to generate these equilibrium values, NEMS iteratively solves a sequence of linear programs and nonlinear equations. This is a nonlinear Gauss-Seidel approach to arrive at estimates of market equilibrium fuel prices and quantities. In this paper, we present existence and uniqueness results for NEMS-type models based on a nonlinear complementarity/variational inequality problem format. Also, we document mathematically, for the first time, how the inputs and the outputs for each NEMS module link together.

Suggested Citation

  • Steven A. Gabriel & Andy S. Kydes & Peter Whitman, 2001. "The National Energy Modeling System: A Large-Scale Energy-Economic Equilibrium Model," Operations Research, INFORMS, vol. 49(1), pages 14-25, February.
    • Handle: RePEc:inm:oropre:v:49:y:2001:i:1:p:14-25
    DOI: 10.1287/opre.49.1.14.11195
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    References listed on IDEAS

    as
    1. S. A. Gabriel, 1998. "An NE/SQP Method for the Bounded Nonlinear Complementarity Problem," Journal of Optimization Theory and Applications, Springer, vol. 97(2), pages 493-506, May.
    2. Andy S. Kydes, 1999. "Energy Intensity and Carbon Emission Responses to Technological Change: The U.S. Outlook," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 93-121.
    3. Frederic H. Murphy & Murthy V. Mudrageda, 1998. "A Decomposition Approach for a Class of Economic Equilibrium Models," Operations Research, INFORMS, vol. 46(3), pages 368-377, June.
    4. Byong-Hun Ahn & William W. Hogan, 1982. "On Convergence of the PIES Algorithm for Computing Equilibria," Operations Research, INFORMS, vol. 30(2), pages 281-300, April.
    5. Thanh Luong & Frederic H. Murphy & Reginald Sanders & Susan H. Holte & Peter Whitman, 1998. "Modeling the Impacts of the 1990 Clean Air Act Amendments," Interfaces, INFORMS, vol. 28(2), pages 1-15, April.
    6. Frederic H. Murphy, 1993. "Making Large-Scale Models Manageable: Modeling from an Operations Management Perspective," Operations Research, INFORMS, vol. 41(2), pages 241-252, April.
    7. Frederic H. Murphy & John J. Conti & Susan H. Shaw & Reginald Sanders, 1988. "Modeling and Forecasting Energy Markets with the Intermediate Future Forecasting System," Operations Research, INFORMS, vol. 36(3), pages 406-420, June.
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