The growing importance of the electricity sector in many economies, and of energy and environmental policies, requires a detailed consideration of these sectors and policies in computable general equilibrium (CGE) models, including both technological and temporal aspects. This paper presents the first attempt to our knowledge at building temporal disaggregation into a CGE model, while keeping technological detail. This contribution is coupled with some methodological improvements over existing technology-rich CGE models. The results of the case study clearly show the enhanced capability of this model for assessing complex policies with load shifting, demand profile changes and technology substitution. The model is able to account for the indirect effects characteristic of CGE models while also mimicking the detailed behavior of the electricity operation and investment present before only in bottom-up detailed models. The present paper is part II out of II and it focuses on an applied policy assessment using such model.
Keywords: Computable General Equilibrium (CGE), Electricity Demand Response.
Registration date: 2013-05-23