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[IR-1.1.2 Studies on the Development of Economic Model for Pan Pacific Region (Final Report)]

[Contact Person]

Akira Hibiki
Senior Researcher
Social Environmental Systems Division,
National Institute for Environmental Studies, Japan
Environmental Agency
16-2 Onogawa, Tsukuba, Ibaraki 305, Japan
Tel:+81-298-50-2510 Fax:+81-298-50-2572
E-mail:hibiki@nies.go.jp

[Abstract]

A lot of economic models have been developed to assess the economical impacts of the global warming policy. They are classified into 2 types, that is, the bottom-up model and the top-down model. The bottom-up model has the advantage in showing the change of the technology choice in detail resulting from the input price change but the disadvantage in describing and analyzing the change of the economic structure. Contrary, the top-down model has the advantage in describing and analyzing the economic structure in detail but the difficulty in describing the concrete image of the technology change. Therefore the linkage of these models makes the more detailed analysis of the policy effects possible because of compensating one model for the disadvantage of another.

The purpose of this study is to examine the methodology of the linkage of the bottom-up model and the top-down model with collaboration with Battelle-PNL and to make a preliminary study of modeling of the linkage. In our study, we explain the theoretical framework for the preliminary model with the linkage. Then, we describe about the model extension of SGM Japan for the preparation of the complete linkage for the future study and show some simulation results by it.

[Total Budget for FY1996-FY1997]

20,993,000 Yen

[Key Words]

Bottom-up model, Top-down model, AIM, SGM