is a regional 3E integrated system model for a
single sector—the energy industry. The specific
model architecture and operation routes are
shown in Fig. 16.
The model assumes the existence of a
forward-looking central planner who maximises
society-wide utility by choosing the optimal path
of decision variables, including investment and
consumption. Utility here is measured mainly by
consumption per capita (c), so the objective
function of this model can be expressed as:
Max
X
t
LðtÞ Á log
cðtÞ
LðtÞ
Y t
m¼0
1 þ rðmÞ
ð
Þ
À1
!
ð1Þ
where:
L is population, and the utility discount factor is
measured by time preference rate r, and
rðtÞ ¼ r 0 Á e
Àd r Át
ð2Þ
d r is the annual decrease factor.
Fig. 16 Block diagram of the optimal 3E integrated system model for growth. Note CUM = cumulative carbon
emissions; ET = energy technology; NET = new energy technology
230
Y. Jianlong and M. Haigh
single sector—the energy industry. The specific
model architecture and operation routes are
shown in Fig. 16.
The model assumes the existence of a
forward-looking central planner who maximises
society-wide utility by choosing the optimal path
of decision variables, including investment and
consumption. Utility here is measured mainly by
consumption per capita (c), so the objective
function of this model can be expressed as:
Max
X
t
LðtÞ Á log
cðtÞ
LðtÞ
Y t
m¼0
1 þ rðmÞ
ð
Þ
À1
!
ð1Þ
where:
L is population, and the utility discount factor is
measured by time preference rate r, and
rðtÞ ¼ r 0 Á e
Àd r Át
ð2Þ
d r is the annual decrease factor.
Fig. 16 Block diagram of the optimal 3E integrated system model for growth. Note CUM = cumulative carbon
emissions; ET = energy technology; NET = new energy technology
230
Y. Jianlong and M. Haigh