This project aims to investigate
- Price elasticities of natural gas and electricity consumption for Swiss industry, and
- Future long-term developments of the industry sector’s energy demand patterns.
The price elasticities will be estimated for industrial sub-sectors using an energy-econometric framework with a two-step error-correction methodology based on time series data covering the last four decades. Future industry sector energy demands will be researched through a multi scenario analysis for which the global macro-economic model E3ME and the Swiss energy system model STEM will be jointly applied. This new approach allows us to analyse long-term energy and climate policy implications from three main perspectives, i.e. economy (incl. international trade effects), environment (pathways for cost-effective climate change mitigation) and technology (fuel switch and deployment of energy efficiency improvements in industry).
An Over view of the WP are illustrated in the figure