Top-down computable general equilibrium (CGE) models are used extensively for analysis of energy and climate policies. Energy-intensive industries are usually represented in top-down economic models as abstract economic production functions, of the constant-elasticity-ofsubstitution (CES)...

Due to the size and structure of its economy, Germany is one of the largest carbon emitters in the European Union. It is responsible for approximately 800 million tons of carbon dioxide (CO2) emissions annually, accounting for about one-fourth of European Union (EU) greenhouse gas emissions....