CEPE (Computable General Equilibrium Model for Energy Policy and Economics) is a static model of the world economy with a regional focus on Western Europe, in particular on Switzerland. CEPE is designed to assess the implications of environmental and energy regulation in particular in the electricity sector. While the main economic sectors are included, the electricity sector is depicted in a detailed manner, i.e., with an hourly resolution for demand. Moreover, special emphasis is put on the role of cross-border electricity trade and the restrictions imposed by the trans-European transmission grid. As a macro-economic model, CEPE includes households which provide labor and capital. These factors are used by firms to produce commodities which are either used by domestic industries or households or exported to other regions. Given these features, CEPE is in particular well suited to analyze the macro-economic consequences of regulatory instruments that affect the electricity sector such as emission trading and renewable energy support schemes. Moreover, the role of and impacts on trans-European electricity trade can be studied.

2010 network capacities

Model inputs

  • Social accounting matrices (GTAP)
  • Hourly electricity generation (ENTSO-E, b)
  • Cross-border electricity transmission capacities (ENTSO-E, c)
  • Electricity generation capacities (Platts)
  • Electricity generation from renewable sources (different transmission system operators and ENTSO-E, a)

Model outputs

  • Macroeconomic aggregates (GDP, economic welfare)
  • Production by economic sector and final demands
  • Hourly electricity generation by technology
  • International trade (hourly basis for electricity)


Detailed model description

Abrell, J. and Rausch, S. (2015): Cross-Country Electricity Trade, Renewable Energy and Transmission Infrastructure Policy. Working Paper ETH Zurich.

Data sources

  • ENTSO-E, a. Electricity generation from renewable sources - monthly production for a specific year (2013).
  • ENTSO-E, b. Hourly electricity generation (2013).
  • ENTSO-E, c. Indicative values for Net Transfer Capacities (NTC) in Continental Europe. Accessed in 2011.
  • GTAP. Narayanan, G., A. Badri, and R. McDougall, ed. 2012. Global Trade, Assistance, and Production: The GTAP 8 Data Base. Center for Global Trade Analysis, Purdue University.
  • Platts. World Electric Power Plants Database (Version Spring 2013).
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