Abstract
Greenhouse gas cap-and-trade systems have been developed and proposed as a partial solution to climate change due to greenhouse gas emissions. ENERGY 2020 has been used to simulate cap-and-trade systems for 15 years. This chapter provides an overview of the ENERGY 2020 simulation model, describes using ENERGY 2020 to simulate various greenhouse gas cap-and-trade systems, and reflects on the lessons learned in the modeling process. ENERGY 2020 is an integrated, multi-region, energy model that has been actively used by state, provincial, and national governments as well as private energy companies since the early 1980s to conduct energy and emission related policy analysis and forecasting. Beginning in 1998, ENERGY 2020 has also been used to analyze several different cap-and-trade systems in the US and Canada.
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Notes
- 1.
Energy supplier data come from the Federal Energy Regulatory Commission (FERC) and the US Department of Energy (DOE) for the US and from Statistics Canada for Canada. US and Canadian fuel and demand data come from the US DOE and Natural Resources Canada, respectively. US and Canadian pollution data come from the US Environmental Protection Agency (EPA) and Environment Canada, respectively.
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- 3.
Informetrica Limited, www.informetrica.ca.
- 4.
End-uses include process heat, space heating, water heating, other substitutables, refrigeration, lighting, air conditioning, motors, and other non-substitutables (miscellaneous). Detailed modes include: small auto, large auto, light truck, medium-weight truck, heavy-weight truck, bus, freight train, commuter train, airplane, and marine. Each mode type can be characterized by gasoline, diesel, electric, ethanol, natural gas, propane, fuel-cell, or hybrid vehicles.
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ENERGY 2020 does include a complete, but aggregate representation of the electric transmission system. Electric transmission data are provided by FERC, the Department of Energy, and the National Electric Reliability Council. The dispatch technologies in the basic model include: oil/gas combustion turbine, oil/gas combined cycle, oil/gas combined cycle with CCS, oil/gas steam turbine, coal steam turbine, advanced coal, coal with CCS, nuclear, base load hydro, peaking hydro, small hydro, wind, solar, wave, geothermal, fuel-cells, flow-battery storage, pumped hydro, biomass, landfill gas, trash, and biogas, but other technologies can be added.
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A 110 node transmission system is used in the default model, but a full AC load-flow bus representation model has also been interfaced with ENERGY 2020.
- 7.
The model has used the work of Daniel McFadden and Clive Granger since its inception in the late 1970s.
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Amlin, J. (2013). Simulation of Greenhouse Gas Cap-and-Trade Systems with ENERGY 2020. In: Qudrat-Ullah, H. (eds) Energy Policy Modeling in the 21st Century. Understanding Complex Systems. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-8606-0_7
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