CEPE-HH (Computable General Equilibrium Model for Energy Policy and Economics - with focus on household consumption)

The Computable General Equilibrium Model for Energy Policy and Economics - with focus on household consumption (CEPE-HH) is a static small open economy model of the Swiss economy. CEPE-HH is designed to assess the implications of environmental and energy regulation in particular on the consumption and welfare of different Swiss households. Using data from the household budget survey HABE, CEPE-HH calibrates 9000+ households with respect to their income and expenditure patterns. The general equilibrium nature of the model makes it possible to establish impacts of energy and climate policy on both income and consumer prices that households face. By distinguishing a large number of households of which several socio-economic properties (such as, e.g., house ownership, size of household, age) are known, it is possible to assess to what extent energy and carbon policy affects some household types more than others.

Generic model structure

Model inputs

  • Swiss input/output table (Swiss Federal Office of Energy)
  • Household Budget Survey (Federal Statistical Office)

Model outputs

  • Sectoral activity levels
  • Market prices of commodities
  • Consumer welfare on household level
  • CO2 levies for reaching policy targets


References

  • Boehringer C., Kosch M., Landis F., and Rausch S. (2017): Efficient and Equitable Policy Design: Taxing Energy Use or Promoting Energy Savings?

Data Sources

  • Swiss input/output table
  • Household budget survey
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