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E3 Models Revisited

Author

Listed:
  • Susana Silva

    (Faculdade de Economia, Universidade do Porto)

  • Isabel Soares

    (CEF.UP, Faculdade de Economia, Universidade do Porto)

  • Óscar Afonso

    (CEF.UP, OBEGEF, Faculdade de Economia, Universidade do Porto)

Abstract

This article analyses the contribution of E3 models to fully understand the complex relationship between the environment, economics and the energy sector. We present a survey of the literature on these models, analyzing the assumptions, features and scope of the main kinds of methodological approaches: bottom-up, top-down and hybrid models. Since the literature on these models is vast, complex and diffuse, our aim is to present it in a simple and compact way. We also show how bottom-up (BU) models depart from top-down (TD) ones and how that approach affects their conclusions and implications. As an attempt to solve the TD-BU incompatibilities, different kinds of hybrid models are examined and their capacity to support realistic environmental policies is criticized under a microeconomic perspective.

Suggested Citation

  • Susana Silva & Isabel Soares & Óscar Afonso, 2010. "E3 Models Revisited," FEP Working Papers 393, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:393
    as

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    File URL: http://www.fep.up.pt/investigacao/workingpapers/10.12.02_wp393.pdf
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    References listed on IDEAS

    as
    1. Rutherford, Thomas F. & Böhringer, Christoph, 2006. "Combining Top-Down and Bottom-up in Energy Policy Analysis: A Decomposition Approach," ZEW Discussion Papers 06-007, ZEW - Leibniz Centre for European Economic Research.
    2. Jonathan Kohler, Terry Barker, Dennis Anderson and Haoran Pan, 2006. "Combining Energy Technology Dynamics and Macroeconometrics: The E3MG Model," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 113-134.
    3. van Vuuren, Detlef P. & de Vries, Bert & Eickhout, Bas & Kram, Tom, 2004. "Responses to technology and taxes in a simulated world," Energy Economics, Elsevier, vol. 26(4), pages 579-601, July.
    4. Loschel, Andreas, 2002. "Technological change in economic models of environmental policy: a survey," Ecological Economics, Elsevier, vol. 43(2-3), pages 105-126, December.
    5. van der Zwaan, B. C. C. & Gerlagh, R. & G. & Klaassen & Schrattenholzer, L., 2002. "Endogenous technological change in climate change modelling," Energy Economics, Elsevier, vol. 24(1), pages 1-19, January.
    6. Christoph Böhringer & Thomas Rutherford, 2002. "Carbon Abatement and International Spillovers," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(3), pages 391-417, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    E3 models; bottom-up models; top-down models; hybrid models;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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