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

Author

Listed:
  • Delzeit, Ruth
  • Beach, Robert
  • Bibas, Ruben
  • Britz, Wolfgang
  • Chateau, Jean
  • Freund, Florian
  • Lefevre, Julien
  • Schuenemann, Franziska
  • Sulser, Timothy
  • Valin, Hugo
  • van Ruijven, Bas
  • Weitzel, Matthias
  • Willenbockel, Dirk
  • Wojtowicz, Krzysztof
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.

Suggested Citation

  • Delzeit, Ruth & Beach, Robert & Bibas, Ruben & Britz, Wolfgang & Chateau, Jean & Freund, Florian & Lefevre, Julien & Schuenemann, Franziska & Sulser, Timothy & Valin, Hugo & van Ruijven, Bas & Weitzel, 2020. "Linking Global CGE models with Sectoral Models to Generate Baseline Scenarios: Approaches, Challenges, and Opportunities," Open Access Publications from Kiel Institute for the World Economy 228648, Kiel Institute for the World Economy (IfW Kiel).
  • Handle: RePEc:zbw:ifwkie:228648
    DOI: 10.21642/JGEA.050105AF
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    More about this item

    Keywords

    Computable general equilibrium models; Model linking baseline scenario; Partial equilibrium model;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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