Uncertainty analysis using Bayesian Model Averaging: a case study of input variables to energy models and inference to associated uncertainties of energy scenarios

Background Energy models are used to illustrate, calculate and evaluate energy futures under given assumptions. The results of energy models are energy scenarios representing uncertain energy futures. Methods The discussed approach for uncertainty quantification and evaluation is based on Bayesian Model Averaging for input variables to quantitative energy models. If the premise is accepted that the energy model results cannot be less uncertain than the input to energy models, the proposed approach provides a lower bound of associated uncertainty. The evaluation of model-based energy scenario uncertainty in terms of input variable uncertainty departing from a probabilistic assessment is discussed. Results The result is an explicit uncertainty quantification for input variables of energy models based on well-established measure and probability theory. The quantification of uncertainty helps assessing the predictive potential of energy scenarios used and allows an evaluation of possible consequences as promoted by energy scenarios in a highly uncertain economic, environmental, political and social target system. Conclusions If societal decisions are vested in computed model results, it is meaningful to accompany these with an uncertainty assessment. Bayesian Model Averaging (BMA) for input variables of energy models could add to the currently limited tools for uncertainty assessment of model-based energy scenarios

Applying Bayesian model averaging for uncertainty estimation of input data in energy modelling

Background Energy scenarios that are used for policy advice have ecological and social impact on society. Policy measures that are based on modelling exercises may lead to far reaching financial and ecological consequences. The purpose of this study is to raise awareness that energy modelling results are accompanied with uncertainties that should be addressed explicitly. Methods With view to existing approaches of uncertainty assessment in energy economics and climate science, relevant requirements for an uncertainty assessment are defined. An uncertainty assessment should be explicit, independent of the assessor’s expertise, applicable to different models, including subjective quantitative and statistical quantitative aspects, intuitively understandable and be reproducible. Bayesian model averaging for input variables of energy models is discussed as method that satisfies these requirements. A definition of uncertainty based on posterior model probabilities of input variables to energy models is presented. Results The main findings are that (1) expert elicitation as predominant assessment method does not satisfy all requirements, (2) Bayesian model averaging for input variable modelling meets the requirements and allows evaluating a vast amount of potentially relevant influences on input variables and (3) posterior model probabilities of input variable models can be translated in uncertainty associated with the input variable. Conclusions An uncertainty assessment of energy scenarios is relevant if policy measures are (partially) based on modelling exercises. Potential implications of these findings include that energy scenarios could be associated with uncertainty that is presently neither assessed explicitly nor communicated adequately

Economic Impacts of Future Changes in the Energy System—National Perspectives

International audienceIn a climate constrained future, hybrid energy-economy model coupling gives additional insight into interregional competition, trade, industrial delocalisation and overall macroeconomic consequences of decarbonising the energy system. Decarbonising the energy system is critical in mitigating climate change. This chapter summarises modelling methodologies developed in the ETSAP community to assess economic impacts of decarbonising energy systems at a national level. The preceding chapter focuses on a global perspective. The modelling studies outlined here show that burden sharing rules and national revenue recycling schemes for carbon tax are critical for the long-term viability of economic growth and equitable engagement on combating climate change. Traditional computable general equilibrium models and energy systems models solved in isolation can misrepresent the long run carbon cost and underestimate the demand response caused by technological paradigm shifts in a decarbonised energy system. The approaches outlined within have guided the first evidence based decarbonisation legislation and continue to provide additional insights as increased sectoral disaggregation in hybrid modelling approaches is achieved