MSG-EE : an applied general equilibrium model for energy and environmental analyses.

Abstract

The economic research activity of Statistics Norway has been directed to a considerable extent towards the development of operational tools for policy analysis and planning. Given the importance of various environmental problems in the current policy debate, perhaps with the so called greenhouse effect as the "front runner", it is not surprising that the development of economic models encompassing energy and environmental issues has been a prime concern for Statistics Norway. This book presents some results from work carried out in this direction. The first part (chapter 1 to 3) describes the background and structure of an integrated economy—energy—environment general equilibrium model for the Norwegian economy called MSG-EE (Multi-Sectoral Growth — Energy and Environment). The second part (chapter 4-7) illustrates the use of the model for various policy analysis (understanding economic growth, carbon taxes, electricity markets and transport). Chapter 8 summarizes and concludes.