LEAP-Macro link

The link between the LEAP energy model and the Macro economic model is shown in the diagram below. For each of the sub-models – LEAP and Macro – most of the model development can be done independently. That allows energy experts to work on LEAP and economists to work on Macro, collaborating only where the models interact.

The combined model is solved iteratively. The Macro model runs first, generating economic activity levels as inputs to LEAP. Then, LEAP runs, simulating the energy system. Among other results, LEAP may report energy sector investment, the supply of primary energy sources, and prices. These outputs can become inputs to the Macro model. If investment is calculated anywhere in LEAP, then it is collected and fed as an input to Macro. Primary energy production and prices are transferred if the correspondence between LEAP and Macro is specified in the configuration file.

After LEAP runs, the Macro model runs again, and the iteration proceeds until the maximum percent difference in economic activity levels in subsequent runs falls below a user-specified tolerance. In practice, only a few iterations (2 to 3) should be sufficient.

The Macro model requires a supply-use table and some parameter files as inputs, as well as a configuration file. The mapping between Macro and LEAP is managed through the configuration file.