End-use Energy Model for Analyzing the Policy Options to Reduce Greenhouse Gas Emissions

Kainuma, M., Matsuoka, Y., & Morita, T. (1995). End-use Energy Model for Analyzing the Policy Options to Reduce Greenhouse Gas Emissions. IIASA Working Paper. IIASA, Laxenburg, Austria: WP-95-121

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Abstract

The objective of this work is to develop the end-use energy model for assessing the policy options to reduce greenhouse gas emissions. This model is a part of the integrated model called AIM (the Asian-Pacific Integrated Model). This module evaluates the effect of introducing a carbon tax on various carbon emission countermeasure technologies such as energy conservation technologies, and the size of consequent CO2 emission reductions. It also estimates the increased effect when the carbon tax is combined with other countermeasure policies, such as the introduction of subsidies. This model was applied to the Japanese case. The conditions for which each energy conservation technology menu would be adopted were defined using its relationship with the carbon tax rate and subsidy assuming a certain end-use energy scenario. Then, the relationships between the introduction of these technology menus and reduced CO2 emissions based on various socioeconomic scenarios were analyzed and an evaluation was made of the effects of combining a carbon tax and subsidies using the recycled revenues from such a tax.

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