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...

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Bibliographic Details
Published inEconomic modelling Vol. 66; pp. 1 - 18
Main Authors Dixon, Peter B., Rimmer, Maureen T., Waschik, Robert
Format Journal Article
LanguageEnglish
Published Elsevier B.V 01.11.2017
Subjects
CGE modelling
Highway modelling
Highway spending policy
Linked modelling
Linked modelling
Highway modelling
Highway spending policy
Codes: C68
L92
CGE modelling
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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