Incorporating Behavioral Effects from Vehicle Choice Models into Bottom-Up Energy Sector Models

This paper demonstrates a practical approach for incorporating behavioral effects from vehicle choice models into E4 (energy/economy/environment/engineering) models. It is based on principles of economic theory that form a common basis for all three types of models (CGE[computable general equilibrium), E4, and vehicle choice/usage models). Derivations are provided that yield a theory-based approach for modifying E4 models that can be used without altering the basic software and modeling infrastructure widely used by many researchers. The approach is illustrated using an empirical application in which the behavioral assumptions from a nested multinomial choice model in an existing modeling system (MA3T) are incorporated into a TIMES/MARKAL model.

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