Theoretical Frameworks to Link Computational General Equilibrium Models with Energy Models An application to New-Zealand

Document Type : Original Article

Authors

1 Department of economics - Cergy Paris université

2 School of economics and finance , Victoria University of Wellington

10.22080/jeem.2024.27124.1007

Abstract

This paper proposes a methodology to link a CGE model with an Energy model. Specifically, an iterative procedure, linking CLIMAT-DGE model with TIMES-NZ model is introduced. The linking methodology benefits from a precise representation of energy and technology choices offered by TIMES-NZ, incorporated into CLIMAT-DGE`s coherent macroeconomic structure. By adopting a two-way linkage, we not only seek to increase the model`s consistency but also seek to add methodological value to this study. Finally , potential applications of this methodology in studying the structural changes of New Zealand`s energy system and their implications for the economy have been discussed.
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