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energy prices. If energy supply and demand match when summed 

 across all trading regions in each group for each fuel, then the 

 global energy system balances. Such a result is unlikely at any 

 arbitrary set of initial energy prices. 



The energy balance component of the model is a set of 

 rules for choosing energy prices which, on successive attempts, 

 brings supply and demand nearer a systemwide balance. Successive 

 energy price vectors are chosen until energy markets balance 

 within a prespecified bound. Figure B-3 displays the interactions 

 necessary to achieve a global energy balance. 

 CO ? Release 



Given the solution from the energy balance component of the 

 model, the calculation of CO2 emissions rates is conceptually 

 straightforward. The problem merely requires the application of 

 appropriate carbon coefficients (carbon release per unit of energy) 

 at the points in the energy flow where carbon is released. Carbon 

 release is associated with the consumption of oil, gas, and coal. 

 Large amounts of CO2 are released from the production of shale 

 oil from carbonate rock and from the production of synthetic 

 fuels from coal. A zero-carbon-release coefficient is assigned 

 to biomass, nuclear, hydro, solar, and conservation. Table B-3 

 shows the CO2 emission coefficients used in the IEA model. 



