EPPA Model Structure

The general framework is a multi-sector, multi-region, computable general equilibrium (CGE) model of the world economy. It utilizes the GTAP dataset (maintained at Purdue University) that includes input-output relationships among sectors within a broader social accounting matrix that includes exports, imports, government, investment and household demand for final goods, and the ownership and supply to each sector of labor, capital and natural resources.

The standard economic specification of the model in billions of dollars of inputs (capital rents, labor, resource rents) and outputs (gross output of each sector and output supplied to each final demand sector) is augmented with accounts in physical terms on energy (exajoules), emissions (tons), land use (hectares), population (billions of people), natural resource endowments (exajoules, hectares) and efficiencies (energy produced/energy used) of advanced technology.
 
These supplemental physical accounts translate economic accounts (in billions of dollars) to corresponding estimates of physical depletion and use of natural resources, technical efficiencies of energy conversion processes and against limits of annual availability of renewable resources such as  land availability, and the number of people affected to consider health effects.

Major goals:

  • Energy, economy, GHG and air pollutant projections

Representation:

  • Global coverage
  • All sectors of economy
 

Model Features:

  • Theory-based
  • Prices are endogenous
  • International trade
  • Inter-industry linkages
  • Distortions (taxes, subsidies, etc.)
  • GDP and welfare effects

Trade-off:

  • Aggregated representation of regions, sectors, technologies

Expansion:

  • Industrial CCS options
  • Hydrogen production options
  • Hydrogen pathways
  • Direct air capture
  • CO2 utilization pathways
Non-Energy Sectors
Crops  
Livestock  
Forestry  
Food  
Energy-Intensive Industry Iron & Steel
Non-Metallic Minerals (Cement, etc.)
Non-Ferrous Metals (Aluminum, etc.)
Petrochemicals (Fertilizers, Olefins, etc.)
Manufacturing  
Industrial Transport  
Household Transport ICE (Gasoline & Diesel)
Plug-in Electric
Battery Electric
Hydrogen
Energy Sectors
Crude Oil  
Refined Oil  
Liquid Fuel from Biomass Current Generation
Advanced Biofuels
Oil Shale  
Coal  
Natural Gas (conv., shale, tight, CBM)  
Electricity Coal
Natural Gas
Oil
Advanced Gas
Advanced Coal
Coal with CCS
Coal + Bio Co-firing with CCS
Gas with CCS
Gas with Advanced CCS
Nuclear
Advanced Nuclear
Hydro
Solar
Wind
Wind with Backup
Solar with Backup
Biomass
Biomass with CCS
Synthetic Gas (from coal)  

For special projects, sectoral and regional disaggregation can be expanded.

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