IAMC-Documentation - User contributions [en]

Model Documentation - GRACE

2021-09-21T09:59:53Z

Taoyuan Wei:

The model for Global Responses to Anthropogenic Change in the Environment (GRACE) is a multi-sector, multi-regional, recursively dynamic global computable general equilibrium model (CGE) written in GAMS and based on [https://www.gtap.agecon.purdue.edu/databases/default.asp GTAP database]. The initial version of the model was developed at CICERO by [http://www.cicero.uio.no/en/publications/internal/103 Aaheim and Rive (2005)] for long-term economic analysis of climate change impacts and greenhouse gas abatement policy. It was designed to allow for additional modules for analysis, including emissions permit trading and climate impacts on economic sectors.

Coupled with an atmospheric model, the model can also be used for integrated assessment modelling of the climate and economy. Since then several versions have been developed by updating data and certain modules for various studies. A recent description of the model is available [http://hdl.handle.net/11250/2480843 here].{{ModelDocumentationTemplate
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[[File:GRACEIllustration.jpg|center|thumb|499x499px|Illustration of the usefulness of GRACE]]

Macro-economy - GRACE

2021-09-21T09:58:15Z

Taoyuan Wei: Move figures to the left

[[File:PaymentFlow.png|alt=Figure 1. Flow of payments in the GRACE model.|thumb|Figure 1. Flow of payments in the GRACE model. Source: Aaheim and Rive (2005).|left]]
[[File:GlobalBank.png|alt=Figure 2. The Regional Household and the Global Bank. Source: based on Hertel (1997).|thumb|'''Figure 2'''. The Regional Household and the Global Bank. Source: based on Hertel (1997).|left]]

Figures 1 and 2 illustrate the circular flow of payments among the main components of the model, which explicitly depicts interactions between commodity and factor markets as well as interactions among regions. The Regional Household, which represents private households and government in each region, receives the payments from supplying primary factors. The income of the Regional Household is spent on private and public consumption, and savings.

The Global Bank collects savings from all regions and then provides investments to regions so that the expected return to capital equalises among regions. The Global Trust collects the earnings from installed capital and distributes them among regions, given the assumption of perfect capital mobility. Firms use primary factors and intermediates to produce goods and services. Domestic and imported commodities build the so-called Armington aggregate, which is then distributed among private and public consumption and investments.

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Model Documentation - GRACE

2021-09-21T09:55:34Z

Taoyuan Wei: Added an illutration figure.

The model for Global Responses to Anthropogenic Change in the Environment (GRACE) is a multi-sector, multi-regional, recursively dynamic global computable general equilibrium model (CGE) written in GAMS and based on [https://www.gtap.agecon.purdue.edu/databases/default.asp GTAP database]. The initial version of the model was developed at CICERO by [http://www.cicero.uio.no/en/publications/internal/103 Aaheim and Rive (2005)] for long-term economic analysis of climate change impacts and greenhouse gas abatement policy. It was designed to allow for additional modules for analysis, including emissions permit trading and climate impacts on economic sectors.

Coupled with an atmospheric model, the model can also be used for integrated assessment modelling of the climate and economy. Since then several versions have been developed by updating data and certain modules for various studies. A recent description of the model is available [http://hdl.handle.net/11250/2480843 here].{{ModelDocumentationTemplate
|IsDocumentationOf=GRACE
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}}
[[File:GRACEIllustration.jpg|center|thumb|836x836px|Illustration of the usefulness of GRACE]]

File:GRACEIllustration.jpg

2021-09-21T09:52:44Z

Taoyuan Wei:

Illustration of the usefulness of GRACE

Model Documentation - GRACE

2020-12-07T05:54:12Z

Taoyuan Wei:

Climate damages, temperature changes - GRACE

2020-12-07T05:51:17Z

Taoyuan Wei:

It is possible to include a simple climate module in GRACE although currently it is not in place. At the moment, GRACE generates greenhouse gas emissions as inputs to simple or large climate models and the climate variables generated from climate models can be used as inputs to GRACE to disturb external environment of the global economic system. The soft-link to climate models enable GRACE to analyze the interactions between economic activities and climate change. For example, we can analyze climate and energy policy effect on global temperature and economic impact of climate change.{{ModelDocumentationTemplate
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Modelling of climate indicators - GRACE

2020-12-07T05:50:34Z

Taoyuan Wei:

Climate indicators such as temperature and precipitation are introduced into GRACE as exogenous variables to disturb economics activities. The climate indicators are generally directly taken from results of other climate models.

More about the impact functions are referred to [[doi:10.1016/j.gloenvcha.2012.06.005|Aaheim et al. (2012)]] and [[doi:10.1007/s11027-016-9718-8|Aaheim et al. (2016)]].{{ModelDocumentationTemplate
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Other sustainability dimensions - GRACE

2020-12-07T05:43:15Z

Taoyuan Wei:

GRACE describes the global and regional economy by region and sector. Hence, any sustainability issues related to the economy can potentially be analyzed by GRACE. For example, the United Nations Sustainable Development Goals (UN SDGs) on poverty, hunger, health and well-being, economic growth, consumption, production, and economic aspect of education and gender equality, water, energy, industry, inequalities, cities and communities.{{ModelDocumentationTemplate
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Other materials - GRACE

2020-12-07T05:42:48Z

Taoyuan Wei:

Other materials - GRACE

2020-12-07T05:42:08Z

Taoyuan Wei:

Generally GRACE does not simulate other materials explicitly.{{ModelDocumentationTemplate
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Water - GRACE

2020-12-07T05:41:17Z

Taoyuan Wei:

Generally GRACE simulates production and consumption of only one water sector.

More details are available at the section of Production system and representation of economic sectors.{{ModelDocumentationTemplate
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Air pollution and health - GRACE

2020-12-07T05:39:56Z

Taoyuan Wei:

Generally GRACE does not consider the relations between air pollution and health. Potentially, the health impact of air pollution can be explicitly simuated by an additional module in GRACE.{{ModelDocumentationTemplate
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Technological change in land-use - GRACE

2020-12-07T05:36:58Z

Taoyuan Wei:

Generally no technological change is assumed in land-use by GRACE although it may be changed over time based on exogenous future pathways.{{ModelDocumentationTemplate
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Agricultural demand - GRACE

2020-12-07T05:35:32Z

Taoyuan Wei:

Agricultural products are used by industrial producers and households, generally as an input to nested CES functions.

More details are available at the section of Production system and representation of economic sectors.{{ModelDocumentationTemplate
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Other land-use - GRACE

2020-12-07T05:34:04Z

Taoyuan Wei:

GRACE does not consider other land-use so far.{{ModelDocumentationTemplate
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Bioenergy land-use - GRACE

2020-12-07T05:33:17Z

Taoyuan Wei:

So far, GRACE does not consider bioenergy land-use explicitly as bioenergy is not included in the model.{{ModelDocumentationTemplate
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Land-use change - GRACE

2020-12-07T05:32:14Z

Taoyuan Wei:

Land use is one part of natural resources in GRACE. It is assumed exogenously given for each production sector based on available data. However, its productivity may vary depending on climate change impacts on agriculture, forestry, and fishery.{{ModelDocumentationTemplate
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Forestry - GRACE

2020-12-07T05:31:17Z

Taoyuan Wei:

Generally GRACE simulates only one sector of agriculture. In some cases focusing on forestry, GRACE has included a specific module of forestry production ([[doi:10.1007/s11027-017-9746-z|Aaheim et al. 2018]]).

More details are available at the section of Production system and representation of economic sectors.{{ModelDocumentationTemplate
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Agriculture - GRACE

2020-12-07T05:28:39Z

Taoyuan Wei:

Generally GRACE simulates only one sector of agriculture. In some cases focusing on agriculture, GRACE has divided the sector into four sub-sectors of wheat, rice, maize, and other agriculture ([[doi:10.1029/2019ef001213|Wei et al. 2019]]).

More details are available at the section of Production system and representation of economic sectors.{{ModelDocumentationTemplate
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Energy end-use - GRACE

2020-12-07T05:23:17Z

Taoyuan Wei:

Energy end-users in GRACE includes industrial producers and households, who consume coal, oil, gas, and electricity to produce goods for industries and satisfy consumption demand of households.

More details have been described in the section of Production system and representation of economic sectors.{{ModelDocumentationTemplate
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Energy end-use - GRACE

2020-12-07T05:22:57Z

Taoyuan Wei:

Energy end-users in GRACE includes industrial producers and households, who consume coal, oil, gas, and electricity to produce goods for industries and satisfy consumption demand of households. More details have been described in the section of Production system and representation of economic sectors.{{ModelDocumentationTemplate
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Technological change - GRACE

2020-12-07T05:18:29Z

Taoyuan Wei:

Technological change of energy and other production activities is generally exogenous in GRACE. In a reference scenario, technological change is calibrated to a given future pathway. In other scenarios, technological change is generallly the same as the reference scenarios without specific reasons.{{ModelDocumentationTemplate
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Fossil energy resources - GRACE

2020-12-07T05:11:38Z

Taoyuan Wei:

Fossil energy resources include resources for coal, oil, and gas, which are generally exogenous in GRACE. In some cases, the endowments can be updated over time based on results from other models.{{ModelDocumentationTemplate
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Energy resource endowments - GRACE

2020-12-07T05:09:41Z

Taoyuan Wei:

Energy resource endowments are generally exogenous in GRACE. Depending on research questions, the endowments can be updated over time based on results from other energy models such as the energy model used by the International Energy Agency.{{ModelDocumentationTemplate
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Non-biomass renewables - GRACE

2020-12-07T05:06:53Z

Taoyuan Wei:

Non-biomass renewables in GRACE include hydro, nuclear, wind, and solar to generate electricity. The endowments of these renewables are exogenous in GRACE. {{ModelDocumentationTemplate
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Energy conversion - GRACE

2020-12-07T05:03:55Z

Taoyuan Wei:

In GRACE, crude oil is used to produce refined oil products and electricity is generated from coal, gas, oil, nuclear, hydro and renewables. For more details, see the section of [[Production system and representation of economic sectors - GRACE|Production system and representation of economic sectors]].{{ModelDocumentationTemplate
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Energy conversion - GRACE

2020-12-07T05:02:47Z

Taoyuan Wei:

In GRACE, crude oil is used to produce refined oil products and electricity is generated from coal, gas, oil, nuclear, hydro and renewables. For more details, see the section of Production system and representation of economic sectors.{{ModelDocumentationTemplate
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Energy conversion - GRACE

2020-12-07T04:59:30Z

Taoyuan Wei: brief.

In GRACE, crude oil is used to produce refined oil products and electricity is generated from coal, gas, oil, nuclear, hydro and renewables.{{ModelDocumentationTemplate
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Technological change in energy - GRACE

2020-12-07T04:57:39Z

Taoyuan Wei: Brief

Technological change in energy is exogenous. It is generally calibrated to obtain energy consumption and production in a given pathway of the future in a reference scenario. In alternative scenarios, the technological change in energy is assumed the same as the reference scenario without specific reasons.{{ModelDocumentationTemplate
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Energy demand - GRACE

2020-12-07T04:53:17Z

Taoyuan Wei: Brief

Energy demand is generally simulated as one group of inputs to energy consumers, who make a trade-off between energy use and other goods based on a behavior simulated by nested CES functions.{{ModelDocumentationTemplate
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Other end-use - GRACE

2020-12-07T04:50:59Z

Taoyuan Wei: Brief

GRACE does not consider other end-use of energy goods so far.{{ModelDocumentationTemplate
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Industrial sector - GRACE

2020-12-07T04:49:48Z

Taoyuan Wei: Brief

Industrial sector uses coal, oil, gas and electricity as well as other consumption goods, following a combination of a nested CES function.{{ModelDocumentationTemplate
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Residential and commercial sectors - GRACE

2020-12-07T04:47:25Z

Taoyuan Wei: Brief

GRACE simulates consumption of one residential sector - private households. The residential sector consumes coal, oil, gas and electricity as well as other consumption goods, following a combination of a nested CES function. Commercial activities are included in the activities of the only sector of services, which use coal, oil, gas and electricity as well as other inputs, following a combination of a nested CES function.{{ModelDocumentationTemplate
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Transport - GRACE

2020-12-07T04:43:15Z

Taoyuan Wei: Brief

GRACE distinguish domestic and international transport.

Domestic transport in a region is divided into air, sea, and other transport activities, modeled as nested CES functions of energy use and other inputs.

Importing countries pay a price premium to the international transport sector. This price premium is determined by a fixed transport factor derived from the base year data. The supply of international transport services is depicted by a Cobb-Douglas aggregate of the service good from the individual regions. The Armington aggregate is then distributed between private, public, investment, and intermediate consumption. {{ModelDocumentationTemplate
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Grid, pipelines and other infrastructure - GRACE

2020-12-07T04:38:33Z

Taoyuan Wei: Brief.

Grid is modeled as one part of electricity transmission and distribution. Services provided by pipelines for liquid and gaseous fuels are modeled as one part of the production of respective fuels. Other productive infrastructure is one part of capital assets in respective fuel production sectors.{{ModelDocumentationTemplate
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Solid fuels - GRACE

2020-12-07T04:35:01Z

Taoyuan Wei: Brief

Solid fuels include coal and part of renewables. The coal production is modeled as a nested CES function of intermediate inputs and primary factors. Coal can be used by industries, electricity generation and households. Renewables are used for electricity generation.{{ModelDocumentationTemplate
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Liquid fuels - GRACE

2020-12-07T04:32:44Z

Taoyuan Wei: Brief

GRACE simulates production and consumption of two liquid fuels, i.e., crude oil and refined oil. Their production is simulated as nested CES functions of intermediate inputs and primary factors. The liquid fuels can be used by industries, electricity generation, and households.{{ModelDocumentationTemplate
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Gaseous fuels - GRACE

2020-12-07T04:29:50Z

Taoyuan Wei: Brief.

GRACE simulates production and consumption of only one gaseous fuel, i.e., natural gas. The production of natural gas is modeled as a nested CES function of intermediate inputs and primary factors. It can be used by industries, electricity generation, and households.{{ModelDocumentationTemplate
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Heat - GRACE

2020-12-07T04:26:58Z

Taoyuan Wei: brief

GRACE does not simulate proudction and consumption of heat so far.{{ModelDocumentationTemplate
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Electricity - GRACE

2020-12-07T04:26:04Z

Taoyuan Wei: Brief

The electricity sector consists of power generation and transmission and distribution. Transmission and distribution are represented by a service sector. Imperfect substitutability among power generation technologies is assumed to depict market inertias associated with switching from one technology to another. GRACE simulates six technologies of power generation from coal, oil, gas, nuclear, hydro, and other renewables.

Electricity is consumed by both industrial producers and households.{{ModelDocumentationTemplate
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Pollutants and non-GHG forcing agents - GRACE

2020-12-07T04:15:45Z

Taoyuan Wei: Brief

It is possible to include non-GHG pollutants in GRACE although it is not the case in the core version. For example, a study ([[Glomsrød et al. 2016]]) has included air pollutants of aerosols and aerosol precursors (black carbon (BC), organic carbon (OC), sulfur dioxide (SO2), ammonia (NH3)), and ozone precursors (NOx, NMVOC, CO).{{ModelDocumentationTemplate
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GHGs - GRACE

2020-12-07T04:11:34Z

Taoyuan Wei: brief

In GRACE, GHGs include CO2, methane (CH4), nitrous oxide (N2O), fluorinated gases (FGAS). In some cases, FGAS is further divided into HFC134a, HFC23, CF4, C2F6, C3F8, and C4F8 ([[doi:10.1016/j.scitotenv.2016.06.005|Glomsrød et al. 2016]]). The emissions are modeled by assuming exogenous emission factors linked to energy use, natural resource use, and/or industrial production output.{{ModelDocumentationTemplate
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Data - GRACE

2020-11-24T15:07:24Z

Taoyuan Wei: brief

GTAP database at https://www.gtap.agecon.purdue.edu/databases

World population data at https://population.un.org/wpp/<nowiki/>{{ModelDocumentationTemplate
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Mathematical model description - GRACE

2020-11-24T15:05:50Z

Taoyuan Wei: brief

Mathematical model description of GRACE is available at http://hdl.handle.net/11250/2480843

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Carbon dioxide removal (CDR) options - GRACE

2020-11-24T15:01:35Z

Taoyuan Wei: brief

CDR options can added to GRACE although currently not considered in the model.{{ModelDocumentationTemplate
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Energy conversion - GRACE

2020-11-24T14:59:31Z

Taoyuan Wei: brief

In GRACE, crude oil is used to produce refined oil products and electricity is generated from coal, gas, oil, and renewables.{{ModelDocumentationTemplate
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Non-biomass renewables - GRACE

2020-11-24T14:58:03Z

Taoyuan Wei: Brief.

Non-biomass renewables in GRACE include hydro, nuclear, wind, and solar to generate electricity. {{ModelDocumentationTemplate
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Bioenergy - GRACE

2020-11-24T14:56:21Z

Taoyuan Wei: brief

In GRACE, bioenergy can be generated from agriculture and forestry, and used to generate electricity.{{ModelDocumentationTemplate
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Uranium and other fissile resources - GRACE

2020-11-24T14:54:30Z

Taoyuan Wei: brief

This is not considered in GRACE.{{ModelDocumentationTemplate
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Fossil energy resources - GRACE

2020-11-24T14:53:50Z

Taoyuan Wei: brief

Fossil energy resources are exogenous in GRACE.{{ModelDocumentationTemplate
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