The socioeconomic impacts of energy transition: a macroeconomic energy- input–output model

This paper presents important model features for covering the socioeconomic impacts and the energy system dynamics of energy transition. For that, the standard IO model is extended to an energy system-IO model by linking to partial bottom-up energy models. The treatment of energy demand deviates from standard energy/environment CGE models by including energy (E) as a capital-stock specific demand. The IO core of the model identifies energy and non-energy industry linkages. Investments can shift the output shares across different energy-related technologies (e.g. from blast-furnace to electric-arc steel). This mechanism is consistently linked to the IO structure by applying a two-layered framework, i.e. energy flows are measured in both monetary and physical units. The impacts of energy transition on income distribution across households can be modelled by introducing ten different household/labour types.