Modeling energy-economy interactions using integrated models

Integrated models are defined as economic energy models that consist of several submodels, either coupled by an interface module, or embedded in one large model. These models can be used for energy policy analysis. Using integrated models yields the following benefits. They provide a framework in which energy-economy interactions can be better analyzed than in stand-alone models. Integrated models can represent both energy sector technological details, as well as the behaviour of the market and the role of prices. Furthermore, the combination of modeling methodologies in one model can compensate weaknesses of one approach with strengths of another. These advantages motivated this survey of the class of integrated models. The purpose of this literature survey therefore was to collect and to present information on integrated models. To carry out this task, several goals were identified. The first goal was to give an overview of what is reported on these models in general. The second one was to find and describe examples of such models. Other goals were to find out what kinds of models were used as component models, and to examine the linkage methodology. Solution methods and their convergence properties were also a subject of interest. The report has the following structure. In chapter 2, a 'conceptual framework' is given. In chapter 3 a number of integrated models is described. In a table, a complete overview is presented of all described models. Finally, in chapter 4, the report is summarized, and conclusions are drawn regarding the advantages and drawbacks of integrated models. 8 figs., 29 refs