Energy in a Resource-based Regional Economy: A Dynamic General Equilibrium Analysis

States and even local governments are increasingly realizing the need for long-term sustainable energy-environment planning as an integral part of their economic development program. These sub-national units are progressively playing a more active role in advancing policies for the reliability, environmental sustainability, and exploring the economic development impact of their energy resources and supplies. This article outlines a modeling framework for an integrated analysis of the energy-environment-economy system in an energy resource-based region within a developed economy. The theoretical structure and mathematical skeletal of this dynamic optimal depletion computable general equilibrium model as the core of this modeling framework is presented in this paper. This model can be used to analyze complex economic development issues arising from energy-environment-economy interactions in regions enjoying an abundance of exhaustible fossil fuel resources.