Keywords: energy modelling, economic modelling, CO2, greenhouse gases, environmental constraints
Chapter 2: Economic models of optimal energy use under environmental constraints
The major purpose of this chapter is to contribute to better policy-making through improvements in models studying the economic impacts of the CO2 problem, and to show ways in which economic instruments can effectively be put to use to alleviate such a problem. This approach differs in at least one major aspect from common studies of the climate change problem. We focus on the analysis, control and optimisation of modelling forms rather than the collection and analysis of data. More concretely, we search for optimal fossil fuel use, research and technology policies rather than predicting the future.