various final consumptions of goods. The energy composite is a CES composite of
the consumption of a fossil fuel composite and electricity that is accompanied by
electricity distribution services. The fossil fuel composite is a CES composite
Output
Intermediate
goods
Intermediate
goods
…
Energy composite
Labor
Fuel composite
Crude oil
Petroleum
products
Electricity
0.5
0.5
Distribution services
Specific
capital stock
Energylabor-added
composite
σ
FE
…
Fig. 10.5 Structure of peak load power generation
Consumption
Goods i
Goods N
Energy composite
Fossil fuel
Crude oil
Petroleum
products
Electricity
0.5
Distribution
services
…
…
Leisure
Utility
σ r
FE
σ r
C
σ r
LS
Fig. 10.6 Structure of utility function
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