A sequential approach to integrated energy modeling in South Africa

We develop a sequential approach to link a bottom-up energy sector model to a detailed dynamic general equilibrium model of South Africa. The approach is designed to simultaneously address the shortcomings and maintain the attractive features of detailed energy sector and general equilibrium models....

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Main Authors: Arndt, Channing, Davies, Rob, Gabriel, Sherwin, Makrelov, Konstatin, Merven, Bruno, Hartley, Faaiqa, Thurlow, James
Format: Journal Article
Language:Inglés
Published: Elsevier 2016
Subjects:
Online Access:https://hdl.handle.net/10568/146205
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author Arndt, Channing
Davies, Rob
Gabriel, Sherwin
Makrelov, Konstatin
Merven, Bruno
Hartley, Faaiqa
Thurlow, James
author_browse Arndt, Channing
Davies, Rob
Gabriel, Sherwin
Hartley, Faaiqa
Makrelov, Konstatin
Merven, Bruno
Thurlow, James
author_facet Arndt, Channing
Davies, Rob
Gabriel, Sherwin
Makrelov, Konstatin
Merven, Bruno
Hartley, Faaiqa
Thurlow, James
author_sort Arndt, Channing
collection Repository of Agricultural Research Outputs (CGSpace)
description We develop a sequential approach to link a bottom-up energy sector model to a detailed dynamic general equilibrium model of South Africa. The approach is designed to simultaneously address the shortcomings and maintain the attractive features of detailed energy sector and general equilibrium models. It also reflects common country-level energy planning processes. We illustrate the capabilities of this integrated bottom-up approach by analyzing the implications of (i) a carbon tax, (ii) liberalization of import supply restrictions in order to exploit regional hydropower potential, and (iii) a combined policy where both carbon taxes and import liberalization are pursued. For the combined scenario, our results suggest substantial emissions reductions relative to Baseline at essentially no cost to economic growth but about a one percent reduction in employment. We conclude that a regional energy strategy, anchored in hydropower, represents a potentially inexpensive approach to decarbonizing the South African economy. The strategy also has political economy attractions in that the combined approach reduces the burden of adjustment of politically sensitive sectors.
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spelling CGSpace1462052025-01-24T08:54:07Z A sequential approach to integrated energy modeling in South Africa Arndt, Channing Davies, Rob Gabriel, Sherwin Makrelov, Konstatin Merven, Bruno Hartley, Faaiqa Thurlow, James taxes computable general equilibrium models carbon prices climate change energy We develop a sequential approach to link a bottom-up energy sector model to a detailed dynamic general equilibrium model of South Africa. The approach is designed to simultaneously address the shortcomings and maintain the attractive features of detailed energy sector and general equilibrium models. It also reflects common country-level energy planning processes. We illustrate the capabilities of this integrated bottom-up approach by analyzing the implications of (i) a carbon tax, (ii) liberalization of import supply restrictions in order to exploit regional hydropower potential, and (iii) a combined policy where both carbon taxes and import liberalization are pursued. For the combined scenario, our results suggest substantial emissions reductions relative to Baseline at essentially no cost to economic growth but about a one percent reduction in employment. We conclude that a regional energy strategy, anchored in hydropower, represents a potentially inexpensive approach to decarbonizing the South African economy. The strategy also has political economy attractions in that the combined approach reduces the burden of adjustment of politically sensitive sectors. 2016-01-01 2024-06-21T09:06:10Z 2024-06-21T09:06:10Z Journal Article https://hdl.handle.net/10568/146205 en Open Access Elsevier Arndt, Channing; Davies, Rob; Gabriel, Sherwin; Makrelov, Konstatin; Merven, Bruno; Hartley, Faaiqa; Thurlow, James. 2016. A sequential approach to integrated energy modeling in South Africa. In Applied Energy. 161(January 2016): 591-599. https://doi.org/10.1016/j.apenergy.2015.06.053
spellingShingle taxes
computable general equilibrium models
carbon
prices
climate change
energy
Arndt, Channing
Davies, Rob
Gabriel, Sherwin
Makrelov, Konstatin
Merven, Bruno
Hartley, Faaiqa
Thurlow, James
A sequential approach to integrated energy modeling in South Africa
title A sequential approach to integrated energy modeling in South Africa
title_full A sequential approach to integrated energy modeling in South Africa
title_fullStr A sequential approach to integrated energy modeling in South Africa
title_full_unstemmed A sequential approach to integrated energy modeling in South Africa
title_short A sequential approach to integrated energy modeling in South Africa
title_sort sequential approach to integrated energy modeling in south africa
topic taxes
computable general equilibrium models
carbon
prices
climate change
energy
url https://hdl.handle.net/10568/146205
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