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Content archived on 2024-05-14

Integrating technology diffusion micro models for assessing sustainable development policy options

Objective

To analyze the macro-economic consequences of the process of technology adoption and diffusion of three "environmentally friendly" new technologies.

OBJECTIVES:
To analyze the macro-economic consequences of the process of technology adoption and diffusion of three "environmentally
friendly" new technologies.
DESCRIPTION:
The research bridges the gap between aggregated
representations of technology used in Computable General
Equilibrium (CGE) type macro-economic forecasting models, and more detailed micro-models at the level of specific
technologies. Improved technology adoption/diffusion models
for potentially important new environmentally relevant
technologies are developed and integrated into a macroeconomic framework. The employment and resource consumption
implications, at the European level, of the three innovative technologies that are widely considered to be "environmentally friendly" are then analysed. These technologies are:
i) the use of non-polluting electric vehicles in urban areas(combined with computerized traffic controls, integration
with other modes of transport such as high-speed trains,
and congestion taxes);
ii) the integration of photo-voltaic (PV) and solar heatingtechnologies in buildings;
iii) the use of biofuels in automotive transportation.
A projection of (technological) performance and costs for each of these technologies is prepared, leading to the formulation of an adoption/diffusion model which describes the process of diffusion through an "experience curve". The innovation submodels are integrated in a CGE framework in an iterative
fashion.
Several alternative "policy mixes", including fiscal reforms are tested and their political acceptability assessed with
respect to those "external" considerations which are not
directly incorporated in the models. These include equity
issues as well as local and global environmental concerns.

Call for proposal

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Coordinator

EUROPEAN INSTITUTE OF BUSINESS ADMINISTRATION
EU contribution
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Boulevard de Constance
77305 FONTAINEBLEAU
France

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Participants (4)