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GTAP-E . From GTAP technical paper 16 Jean-Marc Burniaux and Truong Truong. Energy moved from intermediate input to value added tier. Shares a tier with capital. The model has 8 regions and 8 commodities.

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gtap e

GTAP-E

From GTAP technical paper 16

Jean-Marc Burniaux and Truong Truong

slide2
Energy moved from intermediate input to value added tier. Shares a tier with capital.
  • The model has 8 regions and 8 commodities.
  • 8 regions: USA, EU, Eastern Europe and FSU, Japan, other annex 1 countries, net energy exporters, China and India, and Rest of the World.
  • Sectors are agriculture, coal, oil, gas, oil products, electricity, other energy intensive, and other industries and services.
3 scenarios
3 scenarios
  • 1 No emission trading
    • Total emission constraints applied to Annex 1 countries. Targeted reductions: US 36%, EU 22%, Japan 32%, Other annex 1 countries 36%
  • 2 Trade among Annex 1 countries only
    • Emissions trading permitted among annex 1 countries
  • 3 Worldwide emission trading
closure no trade
Closure no trade
  • exogenous
  • RCTAX
  • MARKCTAX
  • dcwfd(NEGYCOM3,PROD_COMM,REG)
  • .
  • .
  • dcwfi(NEGYCOM3,PROD_COMM,REG)
  • .
  • .
  • dcwpd(NEGYCOM3,REG)
  • dcwpi(NEGYCOM3,REG)
  • dcwgd(NEGYCOM3,REG)
  • dcwgi(NEGYCOM3,REG)
  • c_CTAXBAS(REG,NEGYCOM3B)
  • ! DTBAL exogenous for all regions except one,
  • ! and cgdslack exogenous for that one region (which can be any one).
  • dtbal("USA")
  • dtbal("EU")
  • dtbal("EEFSU")
  • dtbal("JPN")
  • dtbal("RoA1")
  • dtbal("EEx")
  • dtbal("CHIND")
  • cgdslack("RoW") ;
  • Rest Endogenous ;
  • swap gco2t("USA")=RCTAX("USA");
  • swap gco2t("EU")=RCTAX("EU");
  • swap gco2t("JPN")=RCTAX("JPN");
  • swap gco2t("RoA1")=RCTAX("RoA1");
no trade scenario
No trade scenario
  • Carbon taxes in $/ton that were required to achieve the desired reductions were $126 US, $147 EU, $230 Japan, $178 other annex 1 countries
  • The largest reduction in world output: US coal sector, the EU coal sector, Japanese gas sector
  • Net reductions in total output ocurred in all regions.
  • EEFSU, Oil exporters, China-India, and RoW increased production of oil products, electricity, and energy intensive industries
  • Total Changes in output of Annex 1 countries ranged from -126 in the US to + 4 EEFSU
  • Energy exporters’ output declined;
  • Other Annex 1 countries had only very small changes.
trading among annex 1 countries
Trading among Annex 1 Countries
  • Trading among annex 1 countries targeted carbon emissions in individual countries
  • Emission reduction target 22% overall and same regional targets
  • Emissions EEFSU allowed to increase 13 percent
  • Results: carbon tax $78/ton all trading regions
  • Percent changes: USA -27, EU -14, EEFSU -27, JPN -15, RoA1 -21 EEx 2, CHIND -1, RoW 4
  • Overall changes in output quantities to achieve reductions smaller than in no trading scenario
  • Overall reduction was largest in coal sector. US coal sector declines 38%
  • Energy exporters and China-India registered small increases in oil products, electricity and oil intensive industries, but reductions in total output (Oil exporters, China-India)
worldwide emission trading
Worldwide emission trading
  • Trading worldwide targeted similar carbon emissions as the previous scenario
  • However, now overall emission reduction target 14%
  • Results: carbon tax $30/ton all trading regions
  • Percent changes: USA -13, EU -6, EEFSU -13, JPN -6, RoA1 -9, EEx -7, CHIND -32, RoW -9
  • Overall changes in output quantities to achieve reductions smallest in this scenario
  • Largest overall % reduction now in Chinese coal sector (-38%). US coal sector declines 21%
  • Total output declined in each region.
worldwide co 2 trade without us
Worldwide CO2 Trade without US
  • In scenario 3 all of the world except the US trades (US has no quota)
  • Total emission target remains the same
technology change and us participation in kyoto protocol
Technology Change and US Participation in Kyoto Protocol
  • Trading in Annex 1 countries only with and without US participation
  • Coal-saving technological change in electricity production is introduced
updating gdp and population growth rates
Updating GDP and Population Growth Rates
  • In the first (no trade) scenario, updated GDP and population grow rates are incorporated into the model
  • Emission targets are changed to reflect the altered relative importance of countries