%0 Journal Article
%T A Multisectoral Dynamic Model for Energy, Economic, and Climate Scenario Analysis
%A Yen-Heng Henry Chen
%A Sergey Paltsev
%A Angelo Gurgel
%A John M. Reilly
%A Jennifer Morris
%J Low Carbon Economy
%P 70-111
%@ 2158-7019
%D 2022
%I Scientific Research Publishing
%R 10.4236/lce.2022.132005
%X The MIT Economic Projection and Policy Analysis
(EPPA) model has been widely used in energy, land use, technology, and climate
policy studies. Here, we provide details of revisions that form the basis of
EPPA7, the current version. Key updates include: 1) using the latest Global
Trade Analysis Project (GTAP-power) database as the core economic data for the
world economy; 2) updating regional economic growth projections; 3) separating
extant and vintage capital of the previously aggregated fossil generation; 4)
using an innovative approach to calculate the costs of backstop (i.e.,
advanced) power generation options based on engineering data from the Energy
Information Administration; 5) identifying base year biofuel output from
existing sectors; and 6) re-parameterizing electric vehicles based on recent
studies. Our simulations demonstrate that with widespread mitigation policies
worldwide, regions relying heavily on fossil fuel imports benefit from lower
global fossil fuel prices when their domestic emissions targets are lenient,
but the benefits dissipate when deeper emissions cuts are imposed domestically.
We also provide an illustration how the model output can be used to calculate
the net present values of unrealized fossil fuel production and stranded assets
from idling coal power generation under various policy scenarios.
%K Economy-Wide Modeling
%K Climate Scenario
%K Stranded Assets
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=118216