sources, as depicted in Fig. 10.3. Thus, the model considers various power sources;
specifically, base load and peak load power sources are distinguished. The peak load
power source comprises oil-fired, gas-fired, hydrogen, and solar power generation.
The base load power source comprises nuclear, coal-fired, gas-fired, oil-fired, wind,
and hydro power sources.
Output
Intermediate
goods
Intermediate
goods
…
Energy composite
Value-added
Fossil fuel
composite
Labor
Capital
Crude Oil
Petroleum
products
Electricity
0.5
σ
VA
0.5
…
Distribution services
Energy-value-added
composite
σ
FE
Fig. 10.2 Structure of the production function
Electricity
Solar
Nuclear
…
4.0
Gas-fired
(Peak load)
Gas-fired
(Base load)
Gas-fired
Oil-fired
(Peak load)
Oil-fired
(Base load)
Oil-fired
4.0
8.0
Fig. 10.3 Structure of electricity input
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