Energy transformation cost for the Japanese mid-century strategy

Abstract

Computable General Equilibrium models can hardly decouple economic growth and energy consumption while energy system models can hardly predict macroeconomic implications of energy system changes. Here the authors investigated the macroeconomic implications of consistently dealing with energy systems and the stability of further power generation and show that GDP losses were significantly lower than those in the conventional economic model by more than 50% in 2050, while industry and service sector energy consumption are the main factors causing these differences.