10.3.2 GTAP-Power Database
This chapter provides an economic and environmental assessment of nuclear power
using a multicountry multisector CGE model. The CGE model is constructed based
on the GTAP-Power database, which is an electricity-detailed extension of the
GTAP 9 database, a global input–output table. The GTAP-Power database includes
all the data of the GTAP 9 database. Electricity is disaggregated into base load and
peak load power sources. Base load power sources consist of nuclear, coal-fired,
oil-fired, hydro, wind, and other power sources. Peak load power sources consist of
gas-fired, oil-fired, hydro, and solar power sources. Details are described in Peters
(2016). Yamazaki and Takeda (2017) construct a CGE model based on the GTAP
8.1 database and analyze nuclear phaseout in Japan. The benchmark year of GTAP
8.1 is 2007.
10.3.3 Structure of the CGE Model
10.3.3.1 Production Function
In the CGE model, the production function is described by a nested constant
elasticity of substitution (CES) function. In the following, the output of the CES
function is called a CES composite. The Leontief function and the Cobb–Douglas
function are special types of CES function, and Leontief composites and Cobb–
Douglas composites are used as special types of CES composite. The nested
structure of the CES function is depicted in Fig. 10.2. The sectoral output is a
Leontief composite of the input of intermediate goods and the input of an energyvalue-added composite. The energy-value-added composite is a CES composite
consisting of the input of an energy composite and the value added. The value
added is generated by the input of labor and capital services. The energy composite
is a CES composite of the input of a fossil fuel composite together with electricity
and electricity distribution services. The fossil fuel composite is a CES composite of
the input of crude oil and petroleum products. In Fig. 10.2, the input of intermediate
goods and the energy-value-added composite are linked by a horizontal line. This
means that production requires a fixed proportion of input in order to increase output.
Inputs joined by a curved line in the figure are substitutable. For example, the energy
composite and value added are assumed to be substitutable in the model. The degree
of substitutability is determined to be 0.5. This value is the elasticity of substitution
between the energy composite and value added.
This model assumes that each production sector can choose its power source mix
at the time of electricity consumption. The electricity user can change the power mix
elastically, taking into account electricity prices. Given the electricity prices generated using various power sources, the user minimizes the electricity cost per unit.
The electricity input is a CES composite of electricity generated by different power
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M. Yamazaki and W. Zhou
This chapter provides an economic and environmental assessment of nuclear power
using a multicountry multisector CGE model. The CGE model is constructed based
on the GTAP-Power database, which is an electricity-detailed extension of the
GTAP 9 database, a global input–output table. The GTAP-Power database includes
all the data of the GTAP 9 database. Electricity is disaggregated into base load and
peak load power sources. Base load power sources consist of nuclear, coal-fired,
oil-fired, hydro, wind, and other power sources. Peak load power sources consist of
gas-fired, oil-fired, hydro, and solar power sources. Details are described in Peters
(2016). Yamazaki and Takeda (2017) construct a CGE model based on the GTAP
8.1 database and analyze nuclear phaseout in Japan. The benchmark year of GTAP
8.1 is 2007.
10.3.3 Structure of the CGE Model
10.3.3.1 Production Function
In the CGE model, the production function is described by a nested constant
elasticity of substitution (CES) function. In the following, the output of the CES
function is called a CES composite. The Leontief function and the Cobb–Douglas
function are special types of CES function, and Leontief composites and Cobb–
Douglas composites are used as special types of CES composite. The nested
structure of the CES function is depicted in Fig. 10.2. The sectoral output is a
Leontief composite of the input of intermediate goods and the input of an energyvalue-added composite. The energy-value-added composite is a CES composite
consisting of the input of an energy composite and the value added. The value
added is generated by the input of labor and capital services. The energy composite
is a CES composite of the input of a fossil fuel composite together with electricity
and electricity distribution services. The fossil fuel composite is a CES composite of
the input of crude oil and petroleum products. In Fig. 10.2, the input of intermediate
goods and the energy-value-added composite are linked by a horizontal line. This
means that production requires a fixed proportion of input in order to increase output.
Inputs joined by a curved line in the figure are substitutable. For example, the energy
composite and value added are assumed to be substitutable in the model. The degree
of substitutability is determined to be 0.5. This value is the elasticity of substitution
between the energy composite and value added.
This model assumes that each production sector can choose its power source mix
at the time of electricity consumption. The electricity user can change the power mix
elastically, taking into account electricity prices. Given the electricity prices generated using various power sources, the user minimizes the electricity cost per unit.
The electricity input is a CES composite of electricity generated by different power
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M. Yamazaki and W. Zhou