The Service Science of Climate Change Policy Analysis: applying the Spatial Climate Economic Policy Tool for Regional Equilibria

Nettleton, SJ

The Service Science of Climate Change Policy Analysis: applying the Spatial Climate Economic Policy Tool for Regional Equilibria

Nettleton, SJ

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Publisher:: University of Sydney
Publication Type:: Conference Proceeding
Citation:: 18th International Conference on Input-Output Economics, 2010, pp. 1 - 43
Issue Date:: 2010-01

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Field	Value	Language
dc.contributor.author	Nettleton, SJ https://orcid.org/0000-0002-4360-2445	en_US
dc.contributor.editor	Organising Committee	en_US
dc.date	2010-06-20	en_US
dc.date.issued	2010-01	en_US
dc.identifier.citation	18th International Conference on Input-Output Economics, 2010, pp. 1 - 43	en_US
dc.identifier.uri	http://hdl.handle.net/10453/16083
dc.description.abstract	The use of Computable General Equilibrium modelling in evidence-based policy requires an advanced policy making frame of reference, advanced understanding of neoclassical economics and advanced operations research capabilities. This paper examines developments in neoclassical economic models for the analysis of strategy and policy. Regions and industries have the ever-present challenge of building a future where production is competitive and employment is durable. The Spatial Climate Economic Policy Tool for Regional Equilibria (Sceptre) is an intertemporal, multiregional general equilibrium model for investigating regional and industry strategies in the presence of global policies such as carbon emission constraints. In a novel intertemporal innovation, Sceptre draws together disciplines of economics and finance by substituting resource constraints with Dupont sales to asset ratios in order to dynamically link and mediate the stocks and flows of each commodity. This avoids the issue in Ramsey models that investment is merely an uncontrolled residual of production and consumption, and the issue in the Leontief B-matrix approach that final industry assets are cannibalised. Regionally aggregated Make and Use matrices drawn from GTAP's Social Accounting Matrices are used in the underling economic model as regional-commodity production function tableaux. Outputs for policy consideration include global geophysical climate effects, regional and industry activity levels, bilateral trade flows, potential resource expansiveness, investment, labour and regional and industry rates of transition from carbon trading to carbon amelioration and abatement.	en_US
dc.publisher	University of Sydney	en_US
dc.relation.ispartof	18th International Conference on Input-Output Economics	en_US
dc.relation.ispartof	International Conference on Input-Output Economics	en_US
dc.title	The Service Science of Climate Change Policy Analysis: applying the Spatial Climate Economic Policy Tool for Regional Equilibria	en_US
dc.type	Conference Proceeding
utslib.location	Sydney, Australia	en_US
utslib.location.activity	Sydney, Australia	en_US
utslib.for	040104 Climate Change Processes	en_US
dc.location.activity	Sydney, Australia	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Engineering and Information Technology
pubs.organisational-group	/University of Technology Sydney/Faculty of Engineering and Information Technology/School of Systems, Management and Leadership
pubs.organisational-group	/University of Technology Sydney/Students
utslib.copyright.status	open_access
pubs.consider-herdc	true	en_US
pubs.place-of-publication	Sydney, Australia	en_US
pubs.start-date	2010-06-20	en_US

Abstract:

The use of Computable General Equilibrium modelling in evidence-based policy requires an advanced policy making frame of reference, advanced understanding of neoclassical economics and advanced operations research capabilities. This paper examines developments in neoclassical economic models for the analysis of strategy and policy. Regions and industries have the ever-present challenge of building a future where production is competitive and employment is durable. The Spatial Climate Economic Policy Tool for Regional Equilibria (Sceptre) is an intertemporal, multiregional general equilibrium model for investigating regional and industry strategies in the presence of global policies such as carbon emission constraints. In a novel intertemporal innovation, Sceptre draws together disciplines of economics and finance by substituting resource constraints with Dupont sales to asset ratios in order to dynamically link and mediate the stocks and flows of each commodity. This avoids the issue in Ramsey models that investment is merely an uncontrolled residual of production and consumption, and the issue in the Leontief B-matrix approach that final industry assets are cannibalised. Regionally aggregated Make and Use matrices drawn from GTAP's Social Accounting Matrices are used in the underling economic model as regional-commodity production function tableaux. Outputs for policy consideration include global geophysical climate effects, regional and industry activity levels, bilateral trade flows, potential resource expansiveness, investment, labour and regional and industry rates of transition from carbon trading to carbon amelioration and abatement.

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http://hdl.handle.net/10453/16083