The World-Markal Model and Its Application to Cost-Effectiveness, Permit Sharing, and Cost-Benefit Analyses

Abstract

In this article, we present the new multiregional global MARKAL-TIMES1 model and on several recent applications to global energyenvironment issues. The development of the model was motivated by the need to analyze international energy and environmental issues such as climate change, using a detailed, technology rich modeling framework. We then present three different types of application. First, the model is applied to conduct the cost-effectiveness analysis of Greenhouse Gas (GHG) emission abatement, whereby constraints on COn emissions are added to the base case formulation. The model then computes the cost-efficient response of the energy system to these emission targets. Second, we address the issue of "who pays"' for emission reductions (whereas the cost-effictiveness analysis addressed the "who acts" issue). More precisely, we use the model to devise and evaluate certain allocation rules for attributing initial emission rights to regions in a cap-and-trade system. Third, we use World MARKAL in a cost-benefit mode, i.e. we augment the model with damage costs resulting from climate change, and run the integrated model without any pre-set tarlThe applications reported here were made with a MARKAL model. The TIMES incarnation was developed more recently and wil! progressively replace MARKAL in future applications. The two models share many features, including those deiscussed here. In addition, TIMES incorporates new features that are briefly discussed in the Appendix.

Swedish Forest Harvest Level Considering Demand of Biomass for Energy Purposes

“…In this study a TIMES (The Integrated MARKAL-Efom System) (Gargiulo, 2009;Kanudia et al, 2005;Kanudia and Loulou, 1999) type model was used to study and analyze the development of a segment of the Swedish energy system. The framework of the TIMES models is developed and being maintained by the international ETSAP (Energy Technology System Analysis Programme) organization, under an implementation agreement with the International Energy Agency (IEA).…”

Adaptive Model-Predictive Climate Policies in a Multicountry Setting

“…This equilibrium has the property that the total surplus (consumers plus producers surpluses) is maximized. There also exists a World multi-regional Markal-Times model (Kanudia et al 2005). Notice that MARKAL models can be developed at all decision levels from wide regions of the world with several countries, to single countries, regions, counties, cities or even villages.…”

Energy and emissions forecast of China over a long-time horizon

“…Annual costs correspond to investment costs, fixed operating and maintenance costs, variable costs, surveillance costs, decommissioning costs, costs for sunk materials utilized in construction, import, and taxes are considered, but the revenues denote subsidies, recuperation of sunk materials, export, and salvage values. The equations of the initial MARKAL model appear in Fishbone and Abilock [42] and numerous improvements of the model have been developed since then for various applications [43,44]. Currently, MARKAL and TIMES models are used in more than 80 institutions in 50 countries for various purposes including economic analysis of climate policies.…”