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Agent-Based Analysis of Industrial Dynamics and Paths of Environmental Policy: The Case of Non-renewable Energy Production in Germany

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  • Frank Beckenbach

    (Universität Kassel)

  • Maria Daskalakis

    (Universität Kassel)

  • David Hofmann

    (Universität Kassel)

Abstract

This study addresses the difficulties in the transition of advanced market economies towards environmentally—and especially climate-compatible—development paths. It is assumed that standard economic concepts as well as instrument recommendations for treating these problems are not sufficient because agents, markets and political regulation are stylized in a way that neglects essential features of complexity that are at stake. Taking the case of electricity production based on non-renewable resources, this contribution (1) addresses the specificities of this branch of production, (2) considers the relevant industrial dynamics as well as the regulatory status quo in this context, and finally (3) makes an assessment of selected instruments as regards their ecological effectivity and economic efficiency. Against the background of a given regulation path characterized by command and control regulation, the European emission trading system, and transitions in the German energy system, possible future regulation paths and their economic and ecological impacts are specified and evaluated by using agent-based scenario analyses.

Suggested Citation

  • Frank Beckenbach & Maria Daskalakis & David Hofmann, 2018. "Agent-Based Analysis of Industrial Dynamics and Paths of Environmental Policy: The Case of Non-renewable Energy Production in Germany," Computational Economics, Springer;Society for Computational Economics, vol. 52(3), pages 953-994, October.
    • Handle: RePEc:kap:compec:v:52:y:2018:i:3:d:10.1007_s10614-017-9773-6
    DOI: 10.1007/s10614-017-9773-6
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    2. Juana Castro & Stefan Drews & Filippos Exadaktylos & Joël Foramitti & Franziska Klein & Théo Konc & Ivan Savin & Jeroen van den Bergh, 2020. "A review of agent‐based modeling of climate‐energy policy," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 11(4), July.

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