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Costs (11_costs)

Description

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.

Interfaces

Input

module inputs (A: default)
	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_bv_loss (j)	Biodiversity cost	$10^6 USD$	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_land_transition (j)	Costs for lu transitions	$10^6 USD_{05MER}/yr$	x
vm_cost_landcon (j, land)	Costs for land expansion and reduction	$10^6 USD_{05MER}/yr$	x
vm_cost_processing (i)	Processing costs	$10^6 USD_{05MER}/yr$	x
vm_cost_prod_crop (i, factors)	Regional factor costs of capital and labor for crop production	$10^6 USD_{05MER}/yr$	x
vm_cost_prod_fish (i)	Fish factor costs	$10^6 USD_{05MER}/yr$	x
vm_cost_prod_kres (i, kres)	Production costs of harvesting crop residues	$10^6 USD_{05MER}/yr$	x
vm_cost_prod_livst (i, factors)	Livestock factor costs	$10^6 USD_{05MER}/yr$	x
vm_cost_prod_past (i)	Costs for putting animals on pastures	$10^6 USD_{05MER}/yr$	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_cost_urban (j)	Technical adjustment costs		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, factors)	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_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_rotation_penalty (i)	Penalty for violating rotational constraints	$USD_{05MER}$	x
vm_tech_cost (i)	Total Annuitized costs of TC	$10^6 USD_{05PPP}/yr$	x
vm_water_cost (i)	Cost of irrigation water	$USD_{05MER}/m^3$	x

Output

module outputs
	Description	Unit
vm_cost_glo	Total costs of production	$10^6 USD_{05MER}/yr$

Realizations

(A) default

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.

$\begin{multline*} v11\_cost\_reg(i2) = \sum_{factors}vm\_cost\_prod\_crop(i2,factors) + \sum_{kres}vm\_cost\_prod\_kres(i2,kres) + vm\_cost\_prod\_past(i2) + vm\_cost\_prod\_fish(i2) + \sum_{factors}vm\_cost\_prod\_livst(i2,factors) + \sum_{cell(i2,j2),land} vm\_cost\_landcon(j2,land) + \sum_{cell(i2,j2),k} vm\_cost\_transp(j2,k) + vm\_tech\_cost(i2) + vm\_rotation\_penalty(i2) + vm\_nr\_inorg\_fert\_costs(i2) + vm\_p\_fert\_costs(i2) + vm\_emission\_costs(i2) - vm\_reward\_cdr\_aff(i2) + \sum_{factors}vm\_maccs\_costs(i2,factors) + vm\_cost\_AEI(i2) + vm\_cost\_trade(i2) + vm\_cost\_fore(i2) + vm\_cost\_timber(i2) + vm\_cost\_hvarea\_natveg(i2) + vm\_cost\_processing(i2) + vm\_bioenergy\_utility(i2) + vm\_processing\_substitution\_cost(i2) + vm\_costs\_additional\_mon(i2) + \sum_{cell(i2,j2)}vm\_cost\_land\_transition(j2) + \sum_{cell(i2,j2)} vm\_peatland\_cost(j2) + \sum_{cell(i2,j2)}vm\_cost\_bv\_loss(j2) + \sum_{cell(i2,j2)}vm\_cost\_urban(j2) + \sum_{cell(i2,j2)}vm\_water\_cost(i2) \end{multline*}$

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.

Definitions

Objects

module-internal objects (A: default)
	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

Sets

sets in use
	description
cell(i, j)	number of LPJ cells per region i
factors	factors included in factor requirements
i	all economic regions
i2(i)	World regions (dynamic set)
iso	list of iso countries
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
kres(kall)	Residues
land	Land pools
mobil38	types of capital
reg	regression parameters for capital calculation
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
wage_scen	version of wages

Authors

Benjamin Leon Bodirsky, Florian Humpenöder, Jan Philipp Dietrich

MAgPIE - An Open Source land-use modeling framework

4.6.11