Hossein Ehteshamnia - ESSEC Business School

This paper introduces a methodology to link a CGE model with an energy model. The linking methodology benefits from a precise representation of energy and technology choices, incorporated into a coherent macroeconomic structure. More precisely, we propose an iterative procedure, linking VURM model with AUS-TIMES model. Moreover, the applications of this methodology have been discussed with regards to the structural changes of Australia`s energy system, particularly the role of Hydrogen in transition to low-carbon society. Further, potential themes which this procedure enables to investigate have been introduced, including: i) Microeconomic themes, such as the required investments in Hydrogen and renewable electricity in order to meet the demand ii) Macroeconomic themes, such as Hydrogen trade profiles of nations or the effects of Hydrogen related strategies on economic growth and iii) policy related themes including effectiveness of policy options in reducing GDP loses –if any.

CGE Models, Energy system models, Hydrogen economy