Economy-wide Analysis of Swedish Nuclear Power and Electricity Certificates

This report contains a description of work carried out within project “Energy taxation in Sweden- a general equilibrium assessment with a focus on electricity taxation”. The focal point is assessment of energy policy in a broader perspective, using general equilibrium, or economy-wide, models.

The point of departure is a study of energy/climate policy in a small open economy with important energy-intensive production sectors. To this end, we have developed and implemented two approaches to measurement, one based on Computable General Equilibrium models, CGE. The other approach on general equilibrium cost-benefit analysis, CBA in the sequel. In addition, the authors have gathered longitudinal data on household expenditures, in order to study distributional impacts of changing electricity prices.

The CGE-model, which exists in two versions, is based on a global database that includes detailed sectoral data from almost all countries, coupled with data on trade flows, energy carriers and carbon emissions. Swedish electricity generation is modelled such that we can study a scaling down of nuclear capacity according to current plans, 4 reactors out of 9 in use will be taken out of production by 2020. The report describes how a scaling down of nuclear capacity may affect the Swedish economy.


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Bengt Kriström, Chris Boehringer, Per-Olov Johansson, Chandra Kiran and Xiao Hu