Prefectural Representation of the Regions of China in a Bottom-up CGE Model: SinoTERM365

Abstract

We create an applied general equilibrium database that represents 162 sectors in 365 prefectural regions of the Chinese economy. Our approach requires relatively modest data requirements to create a multi-region, sub-national database and extends methods used in The Enormous Regional Model (TERM). We call the new database ‘SinoTERM365’. Where the database structure allows for more information than is available, we use simple assumptions to supply the deficiency. However we hope that model users may collaborate to find more or better data. An illustrative simulation shows the long-run effects of a switch from coal to hydro electricity generation.