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Update of CES mark-up cost implementation: industry mark-up cost budget-neutral as tax, adapt some default cost, refactoring #980

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merged 19 commits into from
Nov 8, 2022

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fschreyer
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@fschreyer fschreyer commented Sep 26, 2022

Purpose of this PR

This provides an update to the CES mark-up cost formulation in buildings and industry as discussed in this issue. The table in the issue provides the details on which cost have been changed and why.

Main changes are:

  • CES mark-up cost in industry now implemented as tax and not as cost to the energy system which have an impact on GDP. This was done as these cost do not correspond to real-world investment cost.
  • CES mark-up cost in industry on H2 and electrification nodes were altered to improve substitution behavior in high Elec/H2 runs

This change requires recalibration of the CES parameters. I could provide such a set of parameters. As we intend to merge some other changes to the CES function, though, it might be worth to merge them all at once and recalibrate only afterwards.

Type of change

(Make sure to delete from the Type-of-change list the items not relevant to your PR)

  • Refactoring
  • Minor change (default scenarios show only small differences)

Checklist:

  • My code follows the coding etiquette
  • I have performed a self-review of my own code
  • Changes are commented, particularly in hard-to-understand areas
  • I have updated the in-code documentation
  • The model compiles and runs successfully (Rscript start.R -q)
  • wait for other PRs that change CES function -> common calibration

Further information (optional):

  • Test runs are here:
  • Comparison of results (what changes by this PR?):

REMIND 12 regions runs with above cost update and Elec or H2 focus:

https://cloud.pik-potsdam.de/index.php/apps/files/?dir=/Shared/REMIND-EU_calibration/Results/ElecH2_2022_08_29&openfile=14279718

@fschreyer
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This is ready to merge but we will wait for some other PRs that change the elasticity of the CES function to calibrate all in one.

@fschreyer fschreyer merged commit 09bb41e into remindmodel:develop Nov 8, 2022
@fschreyer
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New CES parameters for SSP2 and SSP1 uploaded together with #994. Ariadne scenario config updated for new CES mark-up cost values used for electrification, hydrogen and synfuel scenarios.

@fschreyer fschreyer deleted the CESMkup_Update branch October 31, 2023 09:10
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4 participants