Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/24199 
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dc.contributor.authorRutherford, Thomas F.en
dc.contributor.authorBöhringer, Christophen
dc.date.accessioned2009-02-16T14:49:53Z-
dc.date.available2009-02-16T14:49:53Z-
dc.date.issued2006-
dc.identifier.urihttp://hdl.handle.net/10419/24199-
dc.description.abstractThe formulation of market equilibrium problems as mixed complementarity problems (MCP)permits integration of bottom-up programming models of the energy system into top-downgeneral equilibrium models of the overall economy. Despite the coherence and logical appealof the integrated MCP approach, implementation cost and dimensionality both impose limitations on its practical application. A complementarity representation involves both primaland dual relationships, often doubling the number of equations and the scope for error. Whenan underlying optimization model of the energy system includes upper and lower bounds onmany decision variables the MCP formulation may suffer in robustness and efficiency. Whilebounds can be included in the MCP framework, the treatment of associated income effectsis awkward.We present a decomposition of the integrated MCP formulation that permits a convenientcombination of top-down general equilibrium models and bottom-up energy system modelsfor energy policy analysis. We advocate the use of complementarity methods to solve thetop-down economic equilibrium model and quadratic programming to solve the underlyingbottom-up energy supply model. A simple iterative procedure reconciles the equilibriumprices and quantities between both models. We illustrate this approach using a simplestylized model.en
dc.language.isoengen
dc.publisher|aZentrum für Europäische Wirtschaftsforschung (ZEW) |cMannheimen
dc.relation.ispartofseries|aZEW Discussion Papers |x06-007en
dc.subject.jelC61en
dc.subject.jelC68en
dc.subject.jelD58en
dc.subject.jelQ43en
dc.subject.ddc330en
dc.subject.keywordMathematical Programmingen
dc.subject.keywordMixed Complementarityen
dc.subject.keywordTop-Down/Bottom-Upen
dc.subject.stwEnergiepolitiken
dc.subject.stwWirtschaftspolitische Wirkungsanalyseen
dc.subject.stwEnergieökonomiken
dc.subject.stwAllgemeines Gleichgewichten
dc.subject.stwCGE-Modellingen
dc.subject.stwDekompositionsverfahrenen
dc.subject.stwTheorieen
dc.titleCombining Top-Down and Bottom-up in Energy Policy Analysis: A Decomposition Approach-
dc.typeWorking Paperen
dc.identifier.ppn507357183en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:zewdip:4586en

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