Model Documentation

| Version 2.1.0

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51_internalizeDamages

internalizeDamages (51_internalizeDamages)

Description

If turned on, the module 51_internalizeDamages calculates in between iterations the social cost of carbon based on the damages calculated in module 50_damages. These are then stored in the parameter pm_taxCO2eqSCC which is to the carbon tax, endogenizing the social cost of carbon into the model. The method is described in Schultes et al. (2020). There are the options off, DiceLikeItr and BurkeLikeItr, corresponding to the damages calculated in module 50_damages. Aside from the damages, a temperature impulse response is required, which is calculated with MAGICC based on the given emissions pathway. The calculation is done with an annual time step, input from REMIND is interpolated to that. The parameter p51_sccConvergenceMaxDeviation is an indicator for the difference of the SCC to that of the previous iteration, assessing convergence.

Interfaces

Interfaces to other modules
Interfaces to other modules

Input

module inputs (A: BurkeLikeItr | B: DiceLikeItr | C: off)
  Description Unit A B C
cm_damages_BurkeLike_persistenceTime persistence time in years for Burke-like damage functions x
cm_damages_SccHorizon Horizon for SCC calculation. Damages cm_damagesSccHorizon years into the future are internalized. x x
cm_startyear first optimized modelling time step \(year\) x x
pm_consPC
(tall, all_regi)
Consumption per capita x x
pm_damage
(tall, all_regi)
damage factor (reduces GDP) x
pm_damageGrowthRate
(tall, all_regi)
damage function for growth rate of GDP x
pm_damageMarginal
(tall, all_regi)
damage function derivative x x
pm_GDPGross
(tall, all_regi)
gross GDP (before damages) x x
pm_prtp
(all_regi)
Pure rate of time preference x x
pm_taxCO2eqSCC
(ttot, all_regi)
carbon tax component due to damages (social cost of carbon) x x x
pm_temperatureImpulseResponseCO2
(tall, tall)
temperature impulse response to CO2 \(K/GtCO2\) x x
pm_tempScaleGlob2Reg
(tall, all_regi)
scaling factor from global to regional temperature x
pm_ttot_2_tall
(ttot, tall)
mapping from ttot to tall x x

Output

Realizations

(A) BurkeLikeItr

Based on the analytic expression derived in Schultes et al. (2020) the social cost of carbon corresponding to the Burke-based damages calculated in module 50_damages/BurkeLike are calculated.

Limitations There are no known limitations.

(B) DiceLikeItr

Based on the analytic expression derived in Schultes et al. (2020) the social cost of carbon corresponding to the DICE-based damages calculated in module 50_damages/DiceLike are calculated.

Limitations There are no known limitations.

(C) off

The off-realization of the internalizeDamages module sets the parameter pm_taxCO2eqSCC to zero, meaning no social costs of carbon are included in the optimization.

Limitations There are no known limitations.

Definitions

Objects

module-internal objects (A: BurkeLikeItr | B: DiceLikeItr | C: off)
  Description Unit A B C
p51_marginalDamageCumul
(tall, tall, all_regi)
marginal cumulative damage damages x
p51_scc
(tall)
Social cost of carbon (due to GDP damages) \(\$/tCO2eq\) x x
p51_sccConvergenceMaxDeviation max deviation of SCC from last iteration \(percent\) x x
p51_sccLastItr
(tall)
Social cost of carbon (due to GDP damages) from last iteration \(\$/tCO2eq\) x x
p51_sccParts
(tall, tall, all_regi)
Social cost of carbon components (time, region) x

Sets

sets in use
  description
all_regi all regions
iteration iterator for main (Negishi/Nash) iterations
modules all the available modules
regi(all_regi) all regions used in the solution process
tall time index
ttot(tall) time index with spin up

Authors

Anselm Schultes

See Also

01_macro, 02_welfare, core

References

Schultes, Anselm, Gunnar Luderer, Franziska Piontek, Bjoern Soergel, Joeri Rogelj, Elmar Kriegler, and Ottmar Edenhofer. 2020. “Persistent Economic Damages Determine Social Costs of Carbon.”