Stocks, Flows and Hydrogen: A Baseline Model

Abstract

Hydrogen might play an important role in the future energy system of Germany and other European countries. Most likely, large fractions of the hydrogen supply will come from foreign economies where electrolysis is expected to be cheaper, due to a high supply potential of renewable energy sources. The motivation of this paper is to construct a baseline open-economy model for a European country with domestic hydrogen production and hydrogen imports from foreign countries. The idea is to study the effect of different configurations of the economy on domestic labor, import intensity and financial leverage.