INTEGRATION OF PRICE-DEPENDING DEMAND REACTIONS IN AN OPTIMIZING ENERGY EMISSION MODEL FOR THE DEVELOPMENT OF CO2-MITIGATION STRATEGIES

Optimising techno-economic energy emission models are applied to devel op and analyse cost-effective CO2-mitigation strategies on national an d international levels. One shortcoming of existing models is the miss ing integration of behavioural changes due to an increase in energy pr ices caused by the structural changes in the energy sector in order to reach the political targets for a CO2-emission reduction. Therefore a partial equilibrium approach based on an iterative algorithm is creat ed and applied in a CO2-study for the Federal Republic of Germany (FRG ). The results show that cost-effective energy strategies avoiding CO2 -emissions have to consider the consumer price reactions. (C) 1997 Els evier Science B.V.