Laura Atarody at 16:43, 26 September 2023

2023-09-26T16:43:54Z

← Older revision		Revision as of 18:43, 26 September 2023
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	- Investment is savings determined.		- Investment is savings determined.

	The process of calibrating the ENV-Linkages model is broken down into three stages. First, a number of parameters are calibrated, given some elasticity values, to represent the data for historical year 2004 [[:File://main.oecd.org/Homedir1/Atarody L/Desktop/Current work/ENV-L/IAMC full documentation.docx# msocom 1\|[ALE1]]] [[:File://main.oecd.org/Homedir1/Atarody L/Desktop/Current work/ENV-L/IAMC full documentation.docx# msocom 2\|[ALE2]]] as an initial economic equilibrium. This process is referred to as the static calibration. Second, the 2004 equilibrium is updated to a reference year for the model baseline (currently ~~2014[[:File://main.oecd.org/Homedir1/Atarody L/Desktop/Current work/ENV-L/IAMC full documentation.docx# msocom 3\|[ALE3]]]~~ ) by simulating the model dynamically to match historical trends over the period ~~2004~~-~~2014~~; static calibration is performed again for the reference year with price re-normalisation in order to express all variables in constant ~~2014~~ real USD. This step is important, as it ensures that the basis for the simulations is a relatively recent year. Third, the baseline projection for the model horizon ~~2015~~-2050 is based on conditional convergence assumptions about labour productivity and other socio-economic drivers (demographic trends, future trends in energy prices and energy efficiency improvements.		The process of calibrating the ENV-Linkages model is broken down into three stages. First, a number of parameters are calibrated, given some elasticity values, to represent the data for historical year 2014 as an initial economic equilibrium. This process is referred to as the static calibration. Second, the 2004 equilibrium is updated to a reference year for the model baseline (currently 2019) by simulating the model dynamically to match historical trends over the period 2014-2019; static calibration is performed again for the reference year with price re-normalisation in order to express all variables in constant 2019 real USD. This step is important, as it ensures that the basis for the simulations is a relatively recent year. Third, the baseline projection for the model horizon 2019-2050 is based on conditional convergence assumptions about labour productivity and other socio-economic drivers (demographic trends, future trends in energy prices and energy efficiency improvements.

	The baseline projection is then obtained by running the model dynamically over the period 2015-2050, keeping these key variables exogenous but letting the model parameters adjust endogenously. Thus, the model parameters are calibrated using the structural relations of the model (production functions, household preferences, etc.) to mimic the evolution of the key variables over time.		The baseline projection is then obtained by running the model dynamically over the period 2015-2050, keeping these key variables exogenous but letting the model parameters adjust endogenously. Thus, the model parameters are calibrated using the structural relations of the model (production functions, household preferences, etc.) to mimic the evolution of the key variables over time.

Laura Atarody at 16:33, 26 September 2023

2023-09-26T16:33:39Z

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+ENV-Linkages is fully homogeneous in prices and only relative prices matter. All prices are expressed relatively to the numéraire of the price system that is arbitrarily chosen as the export price index of high-income manufactured exports.
 |IsDocumentationOf=ENV-Linkages
 |DocumentationCategory=Model concept, solver and details
 }}

Mathijs Harmsen: Edited automatically from page ENV-Linkages setup.

2023-09-12T14:30:15Z

Edited automatically from page ENV-Linkages setup.

New page

{{ModelDocumentationTemplate
|IsDocumentationOf=ENV-Linkages
|DocumentationCategory=Model concept, solver and details
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Model concept, solver and details - ENV-Linkages - Revision history

Laura Atarody at 16:43, 26 September 2023

Laura Atarody at 16:33, 26 September 2023

Mathijs Harmsen: Edited automatically from page ENV-Linkages setup.