Model Documentation

| Version 2.1.0

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41_emicapregi

Regional Emission Caps (41_emicapregi)

Description

This module computes reginal emission caps both in absolute terms and as share of global emissions. In a setting with emissions trading these caps represent allocated permits and permit shares, respectively. The allocation of caps and permits is based on different burden sharing rules.

Interfaces

Interfaces to other modules
Interfaces to other modules

Input

module inputs (A: AbilityToPay | B: CandC | C: exog | D: GDPint | E: none | F: PerCapitaConvergence | G: POPint)
  Description Unit A B C D E F G
cm_emiscen policy scenario choice x x x
cm_permittradescen scenario on permit trade x x
pm_budgetCO2eq
(all_regi)
budget for regional energy-emissions in period 1 x
pm_emicapglob
(tall)
global emission cap x x x x x x
pm_gdp
(tall, all_regi)
GDP data \(trn US\$ 2005\) x
pm_gdp_gdx
(tall, all_regi)
GDP path from gdx, updated iteratively. x
pm_pop
(tall, all_regi)
population data \(bn people\) x x x x
pm_shPerm
(tall, all_regi)
emission permit shares x x x x x x x
pm_shPPPMER
(all_regi)
PPP ratio for calculating GDP|PPP from GDP|MER x
sm_budgetCO2eqGlob budget for global energy-emissions in period 1 x
vm_co2eqGlob
(ttot)
global emissions to be balanced by allowances. \(GtCeq\) x x x
vm_dummyBudget
(ttot, all_regi)
auxiliary variable that helps to meet permit allocation equation in nash case x
vm_Mport
(tall, all_regi, all_enty)
Import of traded commodity. x x x
vm_perm
(ttot, all_regi)
emission allowances x x x x x x x
vm_Xport
(tall, all_regi, all_enty)
Export of traded commodity. x x x

Output

Realizations

(A) AbilityToPay

Emission caps/permits are allocated according to the ability to pay principle

Limitations There are no known limitations.

(B) CandC

Emission caps/permits are allocated according to the contraction and convergence rule (transition towards equal per capita allocation; with reference years 2005 and 2050)

\[\begin{multline*} vm\_perm(t,regi) = pm\_shPerm(t,regi) \cdot \left(vm\_co2eqGlob(t) \$\left(cm\_emiscen ne 4\right) + pm\_emicapglob(t) \$\left(cm\_emiscen eq 4\right)\right) \end{multline*}\]

Limitations There are no known limitations.

(C) exog

Emission caps/permits are allocated from an exogenous emission path that have to be provided “manually”

Limitations There are no known limitations.

(D) GDPint

Emission caps/permits are allocated according to GDP intensity

\[\begin{multline*} vm\_perm(t,regi) = pm\_shPerm(t,regi) \cdot \left(vm\_co2eqGlob(t) \$\left(cm\_emiscen ne 4\right) + pm\_emicapglob(t) \$\left(cm\_emiscen eq 4\right)\right) \end{multline*}\]

Limitations There are no known limitations.

(E) none

No allocation of regional emission caps/permits - applies to tax scenarios and no-tax scenarios without permit trading

Limitations There are no known limitations.

(F) PerCapitaConvergence

Emission caps/permits are allocated according to the contraction and convergence rule (transition towards equal per capita allocation; with reference years 2020 and 2050)

Limitations There are no known limitations.

(G) POPint

Emission caps/permits are allocated according to each region’s share on cumulated population

\[\begin{multline*} vm\_perm(t,regi) = pm\_shPerm(t,regi) \cdot \left(vm\_dummyBudget(t,regi) \$\left(cm\_emiscen eq 6\right) + vm\_co2eqGlob(t) \$\left(cm\_emiscen ne 4\right) + pm\_emicapglob(t) \$\left(cm\_emiscen eq 4\right)\right) \end{multline*}\]

Limitations There are no known limitations.

Limitations Permit allocation and emissions trading yield less robust results under Nash (decentralized optimization) compared to Negishi (Social planner optimization).

Definitions

Objects

module-internal objects (A: AbilityToPay | B: CandC | C: exog | D: GDPint | E: none | F: PerCapitaConvergence | G: POPint)
  Description Unit A B C D E F G
p41_co2eq
(ttot, all_regi)
emissions from cost-optimal reference run x x x
p41_co2eq_bau
(ttot, all_regi)
emissions from no-policy baseline run x
p41_convergenceyear year of convergence of per-capita-emissions x
p41_correct_factor
(tall)
correction factor so that global pathway matches x
p41_emicapregi
(tall, all_regi)
exogenous regional emission cap x
p41_lambda
(tall)
share parameter x x x
p41_precorrection_reduction
(tall, all_regi)
reduction as calculated from 3rd root calculation, uncorrected x
p41_shEmi2005
(all_regi)
emission shares in 2005 x
p41_shEmi2020
(all_regi)
emission shares in 2020 x
q41_perm_alloc_cap
(ttot, all_regi)
emission permit allocation x x x

Sets

sets in use
  description
all_enty all types of quantities
all_regi all regions
in(all_in) All inputs and outputs of the CES function
modules all the available modules
regi(all_regi) all regions used in the solution process
run iterator for performance test iterations
t(ttot) modeling time, usually starting in 2005, but later for fixed delay runs
tall time index
ttot(tall) time index with spin up

Authors

Marian Leimbach, Christoph Bertram

See Also

24_trade, core

References