The cost module determines the sum total of global production costs in each time step. MAgPIE’s objective is to minimize the global cost of production in a recursive dynamic way. The interface variable vm_cost_glo is used for this purpose. The model optimizes the production activities accordingly to ensure that all the demand and supply constraints are met while minimizing the global production costs.
| Description | Unit | A | |
|---|---|---|---|
| vm_bioenergy_utility (i) |
Utility as negative costs for producing bioenergy | \(USD_{05MER}/yr\) | x |
| vm_cost_AEI (i) |
Annuitized irrigation expansion costs | \(10^6 USD_{04MER}/yr\) | x |
| vm_cost_fore (i) |
Forestry costs | \(10^6 USD\) | x |
| vm_cost_hvarea_natveg (i) |
Cost of harvesting natural vegetation | \(10^6 USD\) | x |
| vm_cost_inv (i) |
Capital investment costs | \(10^6 USD_{05MER} /yr\) | x |
| vm_cost_land_transition (j) |
Costs for lu transitions | \(10^6 USD_{05MER}/yr\) | x |
| vm_cost_landcon (j, land) |
Land conversion costs | \(10^6 USD_{05MER}/yr\) | x |
| vm_cost_processing (i) |
processing costs | \(10^6 USD_{05MER}/yr\) | x |
| vm_cost_prod (i, kall) |
Factor costs | \(10^6 USD_{05MER}/yr\) | x |
| vm_cost_timber (i) |
Actual cost of harvesting timber from forests | \(10^6 USD/yr\) | x |
| vm_cost_trade (i) |
Regional trade costs | \(10^6 USD_{05MER}/yr\) | x |
| vm_cost_transp (j, k) |
Transportation costs | \(10^6 USD_{05MER}/yr\) | x |
| vm_costs_additional_mon (i) |
Punishment cost for additionally transported monogastric livst_egg | \(10^6 USD_{05MER}/yr\) | x |
| vm_emission_costs (i) |
Costs for emission rights for pollutants and greenhouse gases | \(10^6 USD_{05MER}/yr\) | x |
| vm_maccs_costs (i) |
Costs of technical mitigation of GHG emissions | \(10^6 USD_{95MER}/yr\) | x |
| vm_nr_inorg_fert_costs (i) |
Cost of inorganic fertilizers | \(10^6 USD_{05MER}/yr\) | x |
| vm_p_fert_costs (i) |
costs for mineral fertilizers | \(10^6 USD_{05MER}/yr\) | x |
| vm_peatland_cost (j) |
One-time and recurring cost of managed peatland | \(10^6 USD_{05MER}/yr\) | x |
| vm_peatland_emis_cost (i) |
Regional peatland GHG emissions costs | \(10^6 USD_{05MER}/yr\) | x |
| vm_processing_substitution_cost (i) |
Costs or benefits of substituting one product by another | \(10^6 USD_{05MER}/yr\) | x |
| vm_reward_cdr_aff (i) |
Regional average annual expected revenue from afforestation | \(10^6 USD_{05MER}/yr\) | x |
| vm_tech_cost (i) |
Annuitized costs of TC | \(10^6 USD_{05PPP}/yr\) | x |
| Description | Unit | |
|---|---|---|
| vm_cost_glo | Total costs of production | \(10^6 USD_{05MER}/yr\) |
The default realization of the costs module calculates global production costs with a constraint of production always fulfilling the demand.
\[\begin{multline*} vm\_cost\_glo = \sum_{i2} v11\_cost\_reg(i2) \end{multline*}\]
The global costs of production are represented by the sum of regional production costs of different production activities.
\[\begin{multline*} v11\_cost\_reg(i2) = \sum_{kall}vm\_cost\_prod(i2,kall) + vm\_cost\_inv(i2) + \sum_{cell(i2,j2),land} vm\_cost\_landcon(j2,land) + \sum_{cell(i2,j2),k} vm\_cost\_transp(j2,k) + vm\_tech\_cost(i2) + vm\_nr\_inorg\_fert\_costs(i2) + vm\_p\_fert\_costs(i2) + vm\_emission\_costs(i2) - vm\_reward\_cdr\_aff(i2) + vm\_maccs\_costs(i2) + vm\_cost\_AEI(i2) + vm\_cost\_trade(i2) + vm\_cost\_fore(i2) + vm\_cost\_timber(i2) + vm\_cost\_hvarea\_natveg(i2) + vm\_cost\_processing(i2) + vm\_bioenergy\_utility(i2) + vm\_processing\_substitution\_cost(i2) + vm\_costs\_additional\_mon(i2) + \sum_{cell(i2,j2)}vm\_cost\_land\_transition(j2) + \sum_{cell(i2,j2)} vm\_peatland\_cost(j2) + vm\_peatland\_emis\_cost(i2) \end{multline*}\]
The total regional production cost calculation is based on the sum of different MAgPIE production activities. These individual costs are calculated by various cost interfaces, which are in turn calculated inside their respective modules. Different components of regional costs are as follows: Factor costs (38_factor_costs), land conversion costs (39_landconversion), Transportation costs (40_transport), Technological costs (13_tc), Inorganic fertilizers (50_nr_soil_budget), Emission costs (56_ghg_policy), Rewarded CDR from afforestation (Benefits as negative costs) (56_ghg_policy), Abatement costs (57_maccs), Irrigation expansion costs (41_area_equipped_for_irrigation), Trade costs (Transport and bilateral trade) (21_trade), Forestry related costs (afforestation) (32_forestry), Bioenergy costs (60_bioenergy), Processing costs (20_processing), Punish costs for overrate cropland differences (59_som). Small costs for land transitions (10_land). Peatland degradation and restoration costs (58_peatland). Peatland emission costs (56_ghg_policy).
Limitations There are no known limitations.
| Description | Unit | A | |
|---|---|---|---|
| q11_cost_glo | Objective function | \(10^6 USD_{05MER}/yr\) | x |
| q11_cost_reg (i) |
Regional cost constraint | \(10^6 USD_{05MER}/yr\) | x |
| v11_cost_reg (i) |
Regional costs | \(10^6 USD_{05MER}/yr\) | x |
| description | |
|---|---|
| cell(i, j) | number of LPJ cells per region i |
| i | all economic regions |
| i2(i) | World regions (dynamic set) |
| j | number of LPJ cells |
| j2(j) | Spatial Clusters (dynamic set) |
| k(kall) | Primary products |
| kall | All products in the sectoral version |
| kcr(kve) | Cropping activities |
| land | Land pools |
| mobil38 | types of capital |
| t_all(t_ext) | 5-year time periods |
| t(t_all) | Simulated time periods |
| type | GAMS variable attribute used for the output |
| w | Water supply type |
Benjamin Leon Bodirsky, Florian Humpenöder, Jan Philipp Dietrich
10_land, 13_tc, 20_processing, 21_trade, 32_forestry, 35_natveg, 38_factor_costs, 39_landconversion, 40_transport, 41_area_equipped_for_irrigation, 50_nr_soil_budget, 54_phosphorus, 56_ghg_policy, 57_maccs, 58_peatland, 60_bioenergy, 71_disagg_lvst, 73_timber, 80_optimization