How Energy Innovation’s Energy Policy Simulators Work and Are Developed

The Energy Policy Simulator (EPS) is a peer-reviewed, open-source System Dynamics model created in Vensim that allows users to simulate the effects of various energy and climate policies. It utilizes an economy-wide approach with annual time steps, typically running to 2050, and incorporates a profit-maximizing least-cost optimized electricity model. The EPS can model a wide range of policies, such as renewable portfolio standards and fuel economy standards, and includes embedded modules to translate these changes into economic outcomes (GDP, jobs) and health outcomes based on U.S. EPA estimates. The tool's methodologies have been reviewed by experts from institutions such as MIT, Stanford, and various national laboratories.

• The Energy Policy Simulator (EPS) is a System Dynamics computer model built in Vensim that operates as an economy-wide, single region model using annual time steps, typically configured to run until 2050, though it can extend to 2100.
• The model allows users to simulate a variety of policy interventions, including clean energy standards, vehicle fuel economy and zero emissions standards, industry methane standards, and incentives similar to those in the Inflation Reduction Act.
• The EPS integrates specialized modules to calculate secondary impacts: an input-output model for economic metrics like GDP and jobs, and a health module that uses U.S. Environmental Protection Agency benefit-per-ton estimates to determine health outcomes from pollutant changes.
• The tool provides comprehensive outputs across multiple categories, including emissions for 12 different pollutants, detailed electricity sector data (hourly demand and supply), and the sales and stock of various vehicle technologies such as battery electric and hydrogen fuel cell.
• The EPS has undergone extensive peer review by experts from several academic and research institutions, including the Massachusetts Institute of Technology, Stanford University, and the National Renewable Energy Laboratory.

APA

Admin, V. D. (2024). How Energy Innovation’s Energy Policy Simulators Work and Are Developed. Energy Innovation. https://energyinnovation.org/expert-voice/how-energy-innovations-energy-policy-simulators-work-and-are-developed/

Chicago

Admin, Visceral Dev. How Energy Innovation’s Energy Policy Simulators Work and Are Developed. Energy Innovation, 2024. https://energyinnovation.org/expert-voice/how-energy-innovations-energy-policy-simulators-work-and-are-developed/.

Wikipedia

{{cite report |last1=Admin |first1=Visceral Dev |title=How Energy Innovation’s Energy Policy Simulators Work and Are Developed |publisher=Energy Innovation |date=11 September 2024 |url=https://energyinnovation.org/expert-voice/how-energy-innovations-energy-policy-simulators-work-and-are-developed/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{admin2024how, author = {Admin, Visceral Dev}, title = {{How Energy Innovation’s Energy Policy Simulators Work and Are Developed}}, institution = {Energy Innovation}, year = {2024}, month = sep, url = {https://energyinnovation.org/expert-voice/how-energy-innovations-energy-policy-simulators-work-and-are-developed/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }