Linking Global CGE models with Sectoral Models to Generate Baseline Scenarios: Approaches, Challenges, and Opportunities

Ruth Delzeit, Robert Beach, Ruben Bibas, Wolfgang Britz, Jean Chateau, Florian Freund, Julien Lefèvre (), Franziska Schuenemann, Timothy Sulser, Hugo Valin, Bas van Ruijven, Matthias Weitzel, Dirk Willenbockel and Krzysztof Wojtowicz ()

Open Access Publications from Kiel Institute for the World Economy from Kiel Institute for the World Economy (IfW Kiel)

Abstract: When modeling medium and long-term challenges we need a reference path of economic development (the so-called baseline). Because sectoral models often offer a more fundamental understanding of future developments for specific sectors, many CGE modeling teams have adopted approaches for linking their models to sectoral models to generate baselines. Linked models include agricultural sector, energy sector, biophysical and macroeconomic models. We systematically compare and discuss approaches of linking CGE models to sectoral models for the baseline calibration procedure and discuss challenges and best practices. We identify different types of linking approaches which we divide into a) one-way, and b) twoway linking. These two types of linking approaches are then analyzed with respect to the degree of consistency of the linkage, information exchanged, as well as compromises in aggregations and definitions. Based on our assessment, we discuss challenges and conclude with suggestions for best practices and research recommendations.

Keywords: Computable general equilibrium models; Model linking baseline scenario; Partial equilibrium model (search for similar items in EconPapers)
JEL-codes: C68 D58 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-cmp and nep-int
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Citations: View citations in EconPapers (11)

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Journal Article: Linking Global CGE Models with Sectoral Models to Generate Baseline Scenarios: Approaches, Challenges, and Opportunities (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkie:228648

DOI: 10.21642/JGEA.050105AF

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