Technology and Technical Change in the MIT EPPA Model
Name
MITJPSPGC_Rpt111.pdf
Size
272.04 KB
Format
Adobe PDF
Checksum (MD5)
077af833325aae228bc2bb75dc5d40db
Author(s)
Jacoby, Henry D.
Reilly, John M.
McFarland, James R.
Paltsev, Sergey.
Date Issued
July 2004
Publisher
MIT Joint Program on the Science and Policy of Global Change
Citation
Report no. 111
Series/Report no.
;Report no. 111
Abstract
Potential technology change has a strong influence on projections of greenhouse gas emissions and costs of control, and computable general equilibrium (CGE) models are a common device for studying these phenomena. Using the MIT Emissions Prediction and Policy Analysis (EPPA) model as an example, two ways of representing technology in these models are discussed: the sector-level description of production possibilities founded on social accounting matrices and elasticity estimates, and sub-models of specific supply or end-use devices based on engineering-process data. A distinction is made between exogenous and endogenous technical change, and it is shown how, because of model structure and the origin of key parameters, such models naturally include shifts in production process that reflect some degree of endogenous technical change. As a result, the introduction of explicit endogenous relations should be approached with caution, to avoid double counting.
Description
Abstract in HTML and technical report in PDF available on the Massachusetts Institute of Technology Joint Program on the Science and Policy of Global Change website (http://mit.edu/globalchange/www/).
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