Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24199
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dc.contributor.authorRutherford, Thomas F.en_US
dc.contributor.authorBöhringer, Christophen_US
dc.date.accessioned2009-02-16T14:49:53Z-
dc.date.available2009-02-16T14:49:53Z-
dc.date.issued2006en_US
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_US
dc.language.isoengen_US
dc.publisher|aZentrum für Europäische Wirtschaftsforschung (ZEW) |cMannheimen_US
dc.relation.ispartofseries|aZEW Discussion Papers |x06-07en_US
dc.subject.jelC61en_US
dc.subject.jelC68en_US
dc.subject.jelD58en_US
dc.subject.jelQ43en_US
dc.subject.ddc330en_US
dc.subject.keywordMathematical Programmingen_US
dc.subject.keywordMixed Complementarityen_US
dc.subject.keywordTop-Down/Bottom-Upen_US
dc.subject.stwEnergiepolitiken_US
dc.subject.stwWirtschaftspolitische Wirkungsanalyseen_US
dc.subject.stwEnergieökonomiken_US
dc.subject.stwAllgemeines Gleichgewichten_US
dc.subject.stwCGE-Modellingen_US
dc.subject.stwDekompositionsverfahrenen_US
dc.subject.stwTheorieen_US
dc.titleCombining Top-Down and Bottom-up in Energy Policy Analysis: A Decomposition Approachen_US
dc.typeWorking Paperen_US
dc.identifier.ppn507357183en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:zewdip:4586-

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