Published November 12, 2026 | Version v1

The FRIDA v2.1 Energy Module: The role of delayed climate policy on the global energy transition driven by endogenous investments

  • 1. ROR icon Universität Hamburg
  • 2. ROR icon University of Leeds
  • 3. ROR icon University of Lisbon
  • 4. ROR icon Høyskolen Kristiania
  • 5. ROR icon Instituto Dom Luiz
  • 6. ROR icon Potsdam Institute for Climate Impact Research

Description

This study presents the energy system module of FRIDA, a feedback-rich integrated assessment model designed to represent the co-evolution of human and natural systems. The module is fully endogenous, linking energy demand, investment, supply, and climate impacts through dynamic feedbacks rather than optimization or exogenous allocation. It covers fossil, renewable, and nuclear technologies, capturing capital accumulation, learning effects, resource constraints, and climate-related infrastructure damage. We investigate the effects of the timing of ambitious carbon taxes and energy subsidies, nearly eliminating energy emissions and limiting warming, but also generating severe recessions and inflationary pressures.

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