New publication

With an application on the UK, this paper  shows that myopic planning might result in delayed strategic investments and in considerably higher costs for achieving decarbonisation targets compared to estimates done with perfect foresight optimization energy models. It also suggests that carbon prices obtained from perfect foresight energy models might be under-estimated. The study was performed using a combination of the standard UK Times Model (UKTM), a perfect foresight, bottom-up, technology-rich cost optimization energy model, and its myopic foresight version: My-UKTM. This also demonstrates that using perfect foresight optimization models in tandem with their myopic equivalents can provide valuable indications for policy design.