IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v27y2006i1_supplp109-122.html
   My bibliography  Save this article

Induced Technological Change in a Limited Foresight Optimization Model

Author

Listed:
  • Fredrik Hedenus
  • Christian Azar
  • Kristian Lindgren

Abstract

The threat of global warming calls for a major transformation of the energy system in the coming century. The treatment of technological change in energy system models is a critical challenge. Technological change may be treated as induced by climate policy or as exogenous. We investigate the importance of induced technological change (ITC) in GET-LFL, an iterative optimization model with Limited Foresight that incorporates Learning-by-doing. Scenarios for stabilization of atmospheric CO2 concentrations at 400, 450, 500 and 550 ppm are studied. We find that the introduction ofITC reduces the total net present value of the abatement cost over this century by 3-9% compared to a case where technological learning is exogenous. Technology specific policies which force the introduction of fuel cell cars and solar PV in combination with ITC reduce the costs further by 4-7% and lead to significantly different technological solutions, primarily in the transport sector.

Suggested Citation

  • Fredrik Hedenus & Christian Azar & Kristian Lindgren, 2006. "Induced Technological Change in a Limited Foresight Optimization Model," The Energy Journal, , vol. 27(1_suppl), pages 109-122, January.
    • Handle: RePEc:sae:enejou:v:27:y:2006:i:1_suppl:p:109-122
    DOI: 10.5547/ISSN0195-6574-EJ-VolSI2006-NoSI1-4
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5547/ISSN0195-6574-EJ-VolSI2006-NoSI1-4
    Download Restriction: no
    File URL: https://libkey.io/10.5547/ISSN0195-6574-EJ-VolSI2006-NoSI1-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Azar, Christian & Lindgren, Kristian & Andersson, Bjorn A., 2003. "Global energy scenarios meeting stringent CO2 constraints--cost-effective fuel choices in the transportation sector," Energy Policy, Elsevier, vol. 31(10), pages 961-976, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sudhakar Yedla, 2007. "Choosing between Global and Local Emission Control Strategies in Urban Transport Sector, Which way to go?," Development Economics Working Papers 22352, East Asian Bureau of Economic Research.
    2. David Bryngelsson & Fredrik Hedenus & Daniel J. A. Johansson & Christian Azar & Stefan Wirsenius, 2017. "How Do Dietary Choices Influence the Energy-System Cost of Stabilizing the Climate?," Energies, MDPI, vol. 10(2), pages 1-13, February.
    3. Hellsmark, Hans & Jacobsson, Staffan, 2012. "Realising the potential of gasified biomass in the European Union—Policy challenges in moving from demonstration plants to a larger scale diffusion," Energy Policy, Elsevier, vol. 41(C), pages 507-518.
    4. Chen, Huayi & Ma, Tieju, 2017. "Optimizing systematic technology adoption with heterogeneous agents," European Journal of Operational Research, Elsevier, vol. 257(1), pages 287-296.
    5. Persson, Tobias A. & Azar, Christian & Lindgren, Kristian, 2006. "Allocation of CO2 emission permits--Economic incentives for emission reductions in developing countries," Energy Policy, Elsevier, vol. 34(14), pages 1889-1899, September.
    6. Persson, Tobias A. & Azar, C. & Johansson, D. & Lindgren, K., 2007. "Major oil exporters may profit rather than lose, in a carbon-constrained world," Energy Policy, Elsevier, vol. 35(12), pages 6346-6353, December.
    7. Park, Young-Kwon & Yoo, Myung Lang & Lee, Hyung Won & Park, Sung Hoon & Jung, Sang-Chul & Park, Sang-Sook & Kim, Sang-Chai, 2012. "Effects of operation conditions on pyrolysis characteristics of agricultural residues," Renewable Energy, Elsevier, vol. 42(C), pages 125-130.
    8. Chen, Huayi & Ma, Tieju, 2021. "Technology adoption and carbon emissions with dynamic trading among heterogeneous agents," Energy Economics, Elsevier, vol. 99(C).
    9. Weiwei Xiong & Katsumasa Tanaka & Philippe Ciais & Daniel J. A. Johansson & Mariliis Lehtveer, 2022. "emIAM v1.0: an emulator for Integrated Assessment Models using marginal abatement cost curves," Papers 2212.12060, arXiv.org.
    10. Gül, Timur & Kypreos, Socrates & Turton, Hal & Barreto, Leonardo, 2009. "An energy-economic scenario analysis of alternative fuels for personal transport using the Global Multi-regional MARKAL model (GMM)," Energy, Elsevier, vol. 34(10), pages 1423-1437.
    11. Åhman, Max, 2010. "Biomethane in the transport sector--An appraisal of the forgotten option," Energy Policy, Elsevier, vol. 38(1), pages 208-217, January.
    12. Yuhong Wang & Xin Yao & Pengfei Yuan, 2015. "Strategic Adjustment of China’s Power Generation Capacity Structure Under the Constraint of Carbon Emission," Computational Economics, Springer;Society for Computational Economics, vol. 46(3), pages 421-435, October.
    13. Sebastian Lubjuhn & Sandra Venghaus, 2024. "Unlocking the potential of the bioeconomy for climate change reduction: The optimal use of lignocellulosic biomass in Germany," Journal of Industrial Ecology, Yale University, vol. 28(1), pages 144-159, February.
    14. Panos, Evangelos & Kannan, Ramachandran, 2016. "The role of domestic biomass in electricity, heat and grid balancing markets in Switzerland," Energy, Elsevier, vol. 112(C), pages 1120-1138.
    15. Martinsen, Dag & Funk, Carolin & Linssen, Jochen, 2010. "Biomass for transportation fuels--A cost-effective option for the German energy supply?," Energy Policy, Elsevier, vol. 38(1), pages 128-140, January.
    16. Hedenus, Fredrik & Azar, Christian, 2005. "Estimates of trends in global income and resource inequalities," Ecological Economics, Elsevier, vol. 55(3), pages 351-364, November.
    17. Schmidt, Johannes & Leduc, Sylvain & Dotzauer, Erik & Schmid, Erwin, 2011. "Cost-effective policy instruments for greenhouse gas emission reduction and fossil fuel substitution through bioenergy production in Austria," Energy Policy, Elsevier, vol. 39(6), pages 3261-3280, June.
    18. Al-Ghandoor, Ahmed & Jaber, Jamal & Al-Hinti, Ismael & Abdallat, Yousef, 2013. "Statistical assessment and analyses of the determinants of transportation sector gasoline demand in Jordan," Transportation Research Part A: Policy and Practice, Elsevier, vol. 50(C), pages 129-138.
    19. Jeong, Hae-Yong & Kim, Young-In & Lee, Yong-Bum & Ha, Kwi-Seok & Won, Byung-Chool & Lee, Dong-Uk & Hahn, Dohee, 2010. "A 'must-go path' scenario for sustainable development and the role of nuclear energy in the 21st century," Energy Policy, Elsevier, vol. 38(4), pages 1962-1968, April.
    20. Yedla, Sudhakar & Shrestha, Ram M. & Anandarajah, Gabrial, 2005. "Environmentally sustainable urban transportation--comparative analysis of local emission mitigation strategies vis-a-vis GHG mitigation strategies," Transport Policy, Elsevier, vol. 12(3), pages 245-254, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:enejou:v:27:y:2006:i:1_suppl:p:109-122. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.