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dc.contributor.authorZhang, Da
dc.contributor.authorKarplus, V.
dc.contributor.authorRausch, S.
dc.date.accessioned2015-10-20T21:04:18Z
dc.date.available2015-10-20T21:04:18Z
dc.date.issued2015-10-20
dc.identifier.urihttp://hdl.handle.net/1721.1/99379
dc.description.abstractTop-down energy-economic modeling approaches often use deliberately simple techniques to represent heterogeneous resource inputs to production. We show that for some policies, such as feed-in tariffs (FIT) for renewable electricity, detailed representation of renewable resource grades is required to describe the technology more precisely and identify cost-effective policy designs. We extend a hybrid approach for modeling heterogeneity in the quality of natural resource inputs required for renewable energy production in a stylized computable general equilibrium (CGE) framework. Importantly, this approach resolves nearflat or near-vertical sections of the resource supply curve that translate into key features of the marginal cost of wind resource supply, allowing for more realistic policy simulation. In a second step, we represent the shape of a resource supply curve based on more detailed data. We show that for the case of onshore wind development in China, a differentiated FIT design that can only be modeled with the hybrid approach requires less than half of the subsidy budget needed for a uniform FIT design and proves to be more cost-effective.en_US
dc.description.sponsorshipThis work was supported by Eni S.p.A., ICF International, the French Development Agency (AFD), and Shell, founding sponsors of the MIT-Tsinghua China Energy and Climate Project. We are further thankful for support provided by the MIT Joint Program on the Science and Policy of Global Change through a consortium of industrial sponsors and U.S. federal grants. In particular, this work was supported by the DOE Integrated Assessment Grant (DE-FG02-94ER61937).en_US
dc.relation.ispartofseries;284
dc.titleCapturing Natural Resource Dynamics in Top-Down Energy‑Economic Equilibrium Modelsen_US
dc.typeTechnical Reporten_US


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