Model integration and the economics of nuclear power

The author proposes and applies a specific approach to model integration, i.e. the merger of two or several independently developed models. The approach is intended for integrations of activity analysis sector models and applied general equilibrium models. Model integration makes it possible to extend the range of applicability of applied general equilibrium models by exploiting the information contained in sector models. It also makes it possible to evaluate the validity of the partial equilibrium analyses in which sector models often are employed. The proposed approach is used to integrate a sector model of electricity and heat production with a general equilibrium model of the Swedish economy. Both models have been constructed within the research programme. The author uses the integrated model to look at two issues concerning the role of nuclear power on the Swedish electricity market: What are the likely consequences of a nuclear power discontinuation and how does the nuclear power investment programme of the 1970's and the early 1980's compare with a socially efficient one. (Author)