The CEPE-316 is a recursive-dynamic, multi-country model with 3 regions and 16 sectors. A further disaggregation is possible, but can lead to numerical problems. The three regions are Switzerland, the EU and the rest of the world (ROW). It is based on the GTAP Power dataset 9.1, which contains detailed information on energy sectors and emissions for the year 2011 \parencite{Peters2016}. To keep the model solvable, myopic foresight is assumed. Capital stock in the next period is calculated using the actual investments and the depreciated capital at the end of the actual period. The sectoral differentiation is geared to the energy questions: The energy sectors are oil, gas, electricity generation (8) and electricity distribution. The other sectors are the transport, the primary, secondary and tertiary (minus transport) sector. The model allows for exogenous technological change, capacity limits on electricity generation and the inclusions of new generation technologies. The multi-regional character allows for the implementation of different emission trading systems, regional endogenous or exogonous energy or CO2 taxes.

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