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Results for “computable general equilibrium”

Search indexed NASA NTRS and DOE OSTI research on propulsion, heat transfer, battery materials and energy systems. Follow report and document links to the original sources.

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At least 19 records

Toward Enhancing Wastewater Treatment with Resource Recovery in Integrated Assessment and Computable General Equilibrium Models

Sustainable water management is essential to increasing water availability and decreasing water pollution. The wastewater sector is expanding globally and beginning to incorporate technologies that recover nutrients from wastewater. Nutrient recovery increases energy consumption but may reduce the demand for nutrients from virgin sources. We estimate the increase in annual global energy consumption (1,100 million GJ) and greenhouse gas emissions (84 million t CO2e) for wastewater treatment in the year 2030 compared to today’s levels to meet sustainable development goals. To capture these trends, integrated assessment and computable general equilibrium models that address the energy-water nexus must evolve. We reviewed 16 of these models to assess how well they capture wastewater treatment plant energy consumption and GHG emissions. Only three models include biogas production from the wastewater organic content. Four explicitly represent energy demand for wastewater treatment, and eight include explicit representation of wastewater treatment plant greenhouse gas emissions. Of those eight models, six models quantify methane emissions from treatment, five include representation of emissions of nitrous oxide, and two include representation of emissions of carbon dioxide. Our review concludes with proposals to improve these models to better capture the energy-water nexus associated with the evolving wastewater treatment sector.

42 ENGINEERING↗

Dynamic Linking of Upstream Energy and Freight Demands for Bio and Fossil Energy Pathways in the Global Change Analysis Model

Comprehensive study of the environmental impacts associated with demand for an energy resource or carrier in any one sector requires a full consideration of the direct and indirect impacts on the rest of the regional and global energy system. It is important to consider the energy that is consumed in producing primary energy resources and energy consumed in transporting these energy resources internationally and domestically in order to produce a complete picture of these impacts. Biofuels are especially complex since they have feedbacks not just to the energy system but also to regional and global crop markets. Different modeling and analysis strategies have been applied to consider these impacts, which occur “upstream” of final energy consumption, with some success. Traditional life cycle models allow for rich technological detail in linking upstream impacts of energy demand with downstream final consumption; however, they cannot by themselves represent dynamic economic feedbacks across multiple sectors and regions over time. Computable general equilibrium (CGE) modeling does account for economic feedback among all sectors and regions; however, CGE modeling does not lend itself to physical representation of technological detail. Partial equilibrium (PE) modeling is a heterogeneous category describing economic models that focus on a subset of the economy, and they differ in coverage and ease in incorporating more sectors and economic links. In this study, we present a strategy for dynamically including the direct and indirect impacts of energy demand with physical and technology detail by explicitly adding these upstream energy and transportation links to GCAM, a PE model of global energy, land use, and emissions. We incorporate the following inter-sectoral linkages: energy inputs to crop production, energy inputs to fossil resource production, and freight transport requirements of energy and agricultural commodities. We assess the implications of explicitly including these links by measuring the global impacts of increased corn ethanol demand in the United States with and without these links included. Although the net global impact of the upstream links on energy and emissions are relatively modest in the scenarios we studied, the inclusion of these links illustrates interesting trade-offs in energy and transportation demand among fossil fuel and agriculture sectors. These sectoral interactions suggest that this level of modeling detail could be important in evaluating future analytical questions.

Sampedro Martinez de Estivariz, Jon↗

Policy support and technology development trajectory for renewable natural gas in the U.S.

Renewable natural gas (RNG) is a clean alternative to fossil natural gas, which can be used as transportation fuel, among other applications. This study projects the development trajectory of RNG and evaluates its impacts on the future U.S. transportation market using a hybrid computable general equilibrium model. This analysis considers various factors and uncertainties affecting RNG production, such as technology development, market conditions, competition with other advanced biofuels, and national and state policies. In 2050, RNG production will grow to 2.7 billion gallons (10 billion liters), mostly from swine manure, under current policy provisions. This will lead to a reduction in greenhouse gas (GHG) emissions by 58.56 million metric tonne of CO 2e in 2050. Analysis of different technology cases finds RNG from animal manure to be predominant, while RNG from corn stover and cellulosic ethanol are less competitive. Furthermore, a high mandatory target of 1 billion gallons will drive RNG production higher by 8–18 %, while an extended 2 nd -generation biofuel production tax credit will mostly increase cellulosic ethanol production. The model also finds RNG production being affected by uncertainties in market conditions, such as GDP growth, fossil fuel prices, and oil and gas supply.

Biomethane↗

A review of water valuation metrics: Supporting sustainable water use in manufacturing

In the manufacturing sector, water has been often considered too cheap to conserve. Such thinking relies on water valuations that limit the value of water to the price paid. Using such simple methods, the share of water cost to total manufacturing cost is significantly small, <3%. As a result, conserving water and enabling technology uptake is difficult to justify economically and slow to advance, hindering progress toward sustainable water use. However, the value of water to a manufacturer is far greater than the price paid. Valuations such as the true cost of water consider the additional in-plant treatment and energy costs and have been gaining greater traction in the manufacturing sector. However, true cost alone still undervalues water by not accounting for economic and social costs related to scarcity and environmental externalities. This paper makes the case and presents a framework for valuing manufacturing water beyond the price paid and the true cost. The proposed fuller valuation of manufacturing water takes into account the internal and opportunity costs associated with the realization of water risks. The paper follows with a review of a wide range of water valuation metrics, both at the specific industry level and regional/economy-wide level. The use of various valuation metrics incorporating the relationship between the change in value with change in water use, such as marginal value of water, shadow price, and elasticity at the specific industry level, has been limited in the U.S. manufacturing sector. Further, a limited number of studies exist on data-intensive subjective evaluation techniques such as computable general equilibrium modeling and input-output modeling for regional water valuation. After reviewing water value metrics, several recent case studies from manufacturers from the literature are presented to illustrate both the promise and challenges of a fuller valuation of water as proposed here. Some large multinational corporations have moved toward assessing the value of water via supply chain sustainability initiatives, environmental profit and loss accounting, estimating risk-adjusted values of water, hydro-economic modeling, natural capital asset valuation, and developing value chain indices. This paper provides policymakers and technology developers a framework for monetizing water value beyond its true cost and current metrics. If adopted, such fuller water valuations can help make the business case for the development and deployment of cost-effective water-conserving technologies, thereby improving the sustainability of the manufacturing sector with respect to water.

54 ENVIRONMENTAL SCIENCES↗

Regional Economic Impacts of the Los Angeles 100% Renewable Energy Transition

To help mitigate greenhouse gas (GHGs) generation from burning fossil fuels, many state and local governments are requiring utilities to dramatically increase the share of electricity generated from renewable sources. The City of Los Angeles has set a target of 100% renewable energy by 2045 and has formulated a plan that considers nine potential alternative scenarios that differ by technology, location, and timing. Each scenario has a unique set of local investments, operating and maintenance (O&M) costs, and concomitant rate structures. In this study we develop and apply a computable general equilibrium (CGE) model built specifically for LA to estimate and compare the economic impacts for each of the scenarios over time relative to a reference case. We find differences in economic impacts across scenarios, depending on the level and timing of investment and O&M expenditures, as well as differences in the relative rate changes across scenarios. Results show that employment and economic output are positively correlated with greater capital and O&M spending, while higher electricity rates can dampen economic activity. Several scenarios generate positive economic impacts relative to the reference case, showing that the transition need not have harmful economic impacts, and all scenarios generate a number of other positive co-benefits, such as reduced damage to health from the reduction of ordinary air pollutants. The net employment impacts from 2026 to 2045 across the scenarios range from a low of 3,600 job-year losses annually to 4,700 job-year gains, both around only 0.1% of the baseline average annual employment in the city over that period. The analysis also indicates that lower-income households are relatively more affected than others by the scenarios. Overall, even in the most negatively impactful case, the economic output and employment effects are quite small when taken in the context of the overall size of the regional economy and the large reduction in GHGs.

economic impact modeling↗

Tax Credits for Clean Electricity: The Distributional Impacts of Supply-Push Policies in the Power Sector

We evaluate distributional and efficiency consequences of the bulk power clean electricity tax credits authorized by the 2022 Inflation Reduction Act. To do so, we link detailed electricity capacity expansion, computable general equilibrium, microsimulation, and air pollution models to estimate economic welfare and health incidence across demographic groups. We evaluate trade-offs between policy efficiency and income progressivity by comparing the tax credits to cap-and-trade policies. The tax credits encourage increased clean electricity investment, resulting in a reallocation of capital from elsewhere in the economy, higher prices for capital and other goods, lower power prices, and lower emissions. The tax credits yield progressive outcomes for economic welfare at the expense of efficiency while all modeled policies demonstrate progressivity in health impacts. The health benefits, absent climate benefits, exceed total policy costs and provide greater benefits for low-income and historically marginalized households given coincidence of household locations and emissions exposure intensity.

distributional impacts↗

Tax Credits for Clean Electricity: The Distributional Impacts of Supply-Push Policies in the Power Sector

We evaluate distributional and efficiency consequences of the bulk power clean electricity tax credits authorized by the 2022 Inflation Reduction Act. To do so, we link detailed electricity capacity expansion, computable general equilibrium, data-rich microsimulation, and air pollution models to estimate the policy incidence in terms of economic welfare and health impacts across a wide range of demographic groups. We evaluate the tradeoff between policy efficiency and income progressivity by comparing the tax credits to cap-and-trade policies that vary revenue recycling approaches. Under the scenarios analyzed the bulk power tax credits lead to increased clean electricity technology deployment resulting in a reallocation of capital from elsewhere in the economy, higher prices for capital and other goods, lower power prices, and lower emissions. The tax credits yield progressive outcomes for both economic welfare and health impacts. The health benefits exceed total policy costs and provide greater benefits for low-income and historically-marginalized households given the coincidence of household and emission source locations.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Biofuels Induced Land Use Change Emissions: The Role of Implemented Land Use Emission Factors

Biofuels’ induced land-use change (ILUC) emissions have been widely studied over the past 15 years. Many studies have addressed uncertainties associated with these estimates. These studies have broadly examined uncertainties associated with the choice of economic models, their assumptions and parameters, and a few bio-physical variables. However, uncertainties in land-use emission factors that represent the soil and vegetation carbon contents of various land types across the world and are used to estimate carbon fluxes due to land conversions are mostly overlooked. This paper calls attention to this important omission. It highlights some important sources of uncertainty in land-use emissions factors, explores the range in these factors from established data sources, and compares the influence of their variability on ILUC emissions for several sustainable aviation fuel (SAF) pathways. The estimated land-use changes for each pathway are taken from a well-known computable general equilibrium model, GTAP-BIO. Two well-known carbon calculator models (CCLUB and AEZ-EF) that represent two different sets of emissions factors are used to convert the GTAP-BIO estimated land-use changes to ILUC emissions. The results show that the calculated ILUC emissions obtained from these carbon calculators for each examined SAF pathway are largely different, even for the same amortization time horizon. For example, the ILUC emissions values obtained from the AEZ-EF and CCLUB models for producing jet fuel from corn ethanol for a 25-year amortization period are 24.9 gCO 2 e/MJ and 15.96 gCO 2 e/MJ, respectively. This represents a 60% difference between the results of these two carbon calculators for the same set of land-use changes. The results show larger differences for other pathways as well.

09 BIOMASS FUELS↗

A Co-Simulation Framework to Study Future Energy-Economy Interactions

Energy-economy interactions are often studied using top-down integrated assessment or economy models that have broad scope but lack the resolution and process detail to consider complex emerging trends across the energy sector. This presentation describes an approach to maintain both detail and scope by linking NREL's highly resolved models of the electricity, transportation, and buildings sectors with a MIT's USREP computable general equilibrium model of the U.S. economy. We will discuss strategies for linking across disparate models along with preliminary results describing the economy-wide impacts of future energy technology innovation.

ENERGY PLANNING, POLICY, AND ECONOMY↗

A General Method for Automatic Computation of Equilibrium Compositions and Theoretical Rocket Performance of Propellants

A general computer program for chemical equilibrium and rocket performance calculations was written for the IBM 650 computer with 2000 words of drum storage, 60 words of high-speed core storage, indexing registers, and floating point attachments. The program is capable of carrying out combustion and isentropic expansion calculations on a chemical system that may include as many as 10 different chemical elements, 30 reaction products, and 25 pressure ratios. In addition to the equilibrium composition, temperature, and pressure, the program calculates specific impulse, specific impulse in vacuum, characteristic velocity, thrust coefficient, area ratio, molecular weight, Mach number, specific heat, isentropic exponent, enthalpy, entropy, and several thermodynamic first derivatives.

Gordon, Sanford↗

Calibrating Constant Elasticity of Substitution Technologies to Bottom-up Cost Estimates

We propose a method for calibrating an industry-level technology to engineering (bottom-up) estimates with a particular focus on abatement opportunities. As a demonstration, substitution elasticities across inputs are adjusted in the nested cost function for the electricity sector to best fit a target marginal abatement cost (MAC) curve derived from engineering assessments of available technologies. Elasticities are optimized over an entire relevant range of the MAC, whereas current techniques use local point estimates under little or no abatement. In the context of fitting to a given MAC we evaluate alternative nesting structures and find that, while complexity in nesting improves the fit, even relatively simple nesting structures can reasonably approximate the target MAC. In our example, focused on the electricity sector, we find standard elasticities adopted in top-down models moderately overstate abatement costs relative to the engineering targets. In our preferred specification the most important adjustment is to escalate the substitution elasticity between energy and value-added inputs. This is consistent with an argument that the current set of point estimates fail to properly account for new capital-based technologies. These conclusions, however, are sensitive to our assumption about output-intensity abatement and consumer price responsiveness, both of which are not delineated in engineering estimates.

abatement cost↗

ELAS: A general-purpose computer program for the equilibrium problems of linear structures. Volume 2: Documentation of the program

A general purpose digital computer program for the in-core solution of linear equilibrium problems of structural mechanics is documented. The program requires minimum input for the description of the problem. The solution is obtained by means of the displacement method and the finite element technique. Almost any geometry and structure may be handled because of the availability of linear, triangular, quadrilateral, tetrahedral, hexahedral, conical, triangular torus, and quadrilateral torus elements. The assumption of piecewise linear deflection distribution insures monotonic convergence of the deflections from the stiffer side with decreasing mesh size. The stresses are provided by the best-fit strain tensors in the least squares at the mesh points where the deflections are given. The selection of local coordinate systems whenever necessary is automatic. The core memory is used by means of dynamic memory allocation, an optional mesh-point relabelling scheme and imposition of the boundary conditions during the assembly time.

Utku, S.↗

Variable renewable energy deployment in low-emission scenarios: The role of technology cost and value

While rapid deployment of variable renewable energy (VRE) technologies, namely wind and solar PV, is often projected in 2C pathways generated by integrated assessment models, there is a wide range in projected VRE deployment by mid-century. Such differences could be the result of differences in assumptions about future technology costs and/or differences in model approaches for capturing other aspects of technology competitiveness. Here we introduce a consistent competitiveness metric, profitability-adjusted levelized cost of electricity (or PLCOE), to an integrated assessment model (EPPA) to evaluate the representation of technology competition, including VRE, in low-emission scenarios. We show that representing the value of technology (alongside cost) may significantly impact VRE deployment relative to scenarios without such an adjustment. In addition, we show that varying VRE costs by about 35% in 2050 results in differences in VRE deployment that span much of the range in outcomes (over the same period) observed in likely 2C scenarios assessed by the IPCC, suggesting that both cost and value are key drivers of VRE deployment in such scenarios. Given the central role that VRE technologies play in the electricity mix across most scenarios, we also find that alternative cost assumptions for VRE technologies can lead to changes in electricity prices, the associated demand for electricity, and total final and primary energy consumption. However, the demand for fuels other than electricity is relatively insensitive to VRE assumptions in the 2C scenarios considered here.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗