Integrating the bottom-up and top-down approach to energy economy modelling. The case of Denmark

This paper presents results from an integration project covering Danish models based on bottom-up and top-down approaches to energy]economy modelling. The purpose of the project was to identify theoretical and methodological problems for integrating existing models for Denmark and to implement an integration of the models.

The integration was established through a number of links between energy bottom-up modules and a macroeconomic model. In this integrated model it is possible to analyse both top-down instruments, such as taxes along with bottom-up instruments, such as regulation of technology choices for power plants and energy standards for householdelectric appliances.

It is shown that combining the two kinds of initiatives reduces the emission-reducing effect of each of the instruments remarkably.