Economic-Environmental Model of China, Disaggregated Electricity
An appendix of the paper Cao, Ho and Liu (2023). “Analyzing multi-greenhouse gas mitigation of China using a general equilibrium model,” Environmental Research Letters, 18, 025001.
In this appendix we describe the economic-environment model for China in some detail, beginning with the modeling of each of the main economic agents in section A.1. Then in section A.2 we describe the data and parameters underlying the model. Cao, Ho, Jorgenson and Nielsen (2019) is a 33-sector model based on a 2014 input-output table, and this model with the electricity sector composed of 7 different generation technologies is based on that. A previous version of this electricity model of the Chinese economy (v17) is used in Timilsina, Cao and Ho (2018). This is a multi-sector model of economic growth where the main drivers of growth are population growth, capital accumulation, total factor productivity growth and changes in the quality of labor and capital. It has a dynamic recursive structure, i.e. where investment is determined by fixed savings rates as in the Solow model. Consumption demand is driven by a translog household model that distinguishes demand by different demographic groups.