A simulation model for Canada-US climate policy analysis

Forecasting the effectiveness and economic impacts of public policies to tackle climate change requires sophisticated energy-economy models. This research is a step towards the integration of bottom-up technology models and top-down macroeconomic models. A simulation model of the energy-economy of Canada and the United States is used to account for how the combined energy system of both countries is likely to respond to Canadian and US policy. Various climate policy scenarios are simulated and the model forecasts how energy trade between Canada and the US might change due to the policies. The results demonstrate that modelling the combined energy-economy of multiple countries is an important component of climate policy analysis, especially for Canada.