Energy and Environmental Policy Modeling

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A Simple Model of Electric Power Network ...48 Power flow equations ...48 Social welfare action ...49 A Market Mechanism ...50 An efficient trading rule ...51 Competitive equilibrium and social optimum ...52 A Dynamic Trading Process ...54 An Illustrative Example ...56 Alternative Implementation Plans ...59 Conclusions ...59 Appendix ...60 References ...64 Endnotes ...64 Chapter 5: The Berlin Mandate: The Design ofCost-Effictive Mitigation Strategies ...67 Introduction ...68 The Models ...69 Future Emissions ...70 The Costs of Alternative Commitments ...73 Some Final Comments ...80 Endnotes ...82 Chapter 6: Some Implications of Improved CO] Emissions Control Technology in The Context of Global Climate Change ...85 Introduction ...85 The CET A-R Model ...86 Economic system ...86 Climate system ...87 Uncertain losses from temperature rise ...87 Technology Assumptions ...88 Implications of Loss Probability and Technology Assumptions ...89 Improved Technology and the Value of Infonnation About Damage ...94 Value of Information about Technology and Benefits of Improved Technology ...95 Sununary and Conclusions ...97 References ...97 Endnotes ...9 8 Chapter 7: Determining an Optimal Afforestation Policy: A Cost-Benefit Analysis ...99 Introduction - Motivation and afforestation ...99 Afforesting and halting deforestation: domestic verses global solutions ...l 01 Research Objectives ...l 02 Integrated assessment...102 Time horizon and discounting ...103 Carbon sequestration time path ...l 03 vi Interactions with other markets ...104 Structural Overview ...l 04 Traditional timberland module ...106 Afforestation module ...106 Timber market module ...l 08 Sequestration calculations ...109 bjective function ...109 Regionalization and Model Data ...110 Southern submodel data ...111 Pacific submodel data ...