Linking CGE and specialist models: Deriving the implications of highway policy using USAGE-Hwy
Scientists/engineers create specialist partial-equilibrium models of energy, environment and transportation. We show how technical information from such models can be transferred into a CGE model. We illustrate the approach by describing the creation and application of USAGE-Hwy which combines USAGE...
Saved in:
Published in | Economic modelling Vol. 66; pp. 1 - 18 |
---|---|
Main Authors | , , |
Format | Journal Article |
Language | English |
Published |
Elsevier B.V
01.11.2017
|
Subjects | |
Online Access | Get full text |
Cover
Loading…
Summary: | Scientists/engineers create specialist partial-equilibrium models of energy, environment and transportation. We show how technical information from such models can be transferred into a CGE model. We illustrate the approach by describing the creation and application of USAGE-Hwy which combines USAGE, a CGE model of the U.S., with HERS, a specialist highway model. USAGE-Hwy translates micro information from HERS on the effects of highway expenditure programs into implications for GDP, employment, and the trade-off between current and future living standards. Combination models such as USAGE-Hwy bring scientific/engineering information into the economic domain, facilitating its use in policy discussions.
•Scientists and engineers build detailed models in energy, environment and transport.•Results from these models can be absorbed in a CGE model.•We link a detailed highway model (HERS) for the U.S. with a CGE model (USAGE).•The combined model translates HERS highway spending data into economic implications.•We find that increased highway expenditure would have a positive welfare effect. |
---|---|
ISSN: | 0264-9993 1873-6122 |
DOI: | 10.1016/j.econmod.2017.04.022 |