Economic activity - REMIND
|Institution||Potsdam Institut für Klimafolgenforschung (PIK), Germany, https://www.pik-potsdam.de.|
|Solution concept||General equilibrium (closed economy)MAgPIE: partial equilibrium model of the agricultural sector;|
|Solution method||OptimizationMAgPIE: cost minimization;|
The three main components of GDP are capital, labor and energy. The energy sector is split into different final, secondary and primary components nested through a CES function (see more detailed description under Production system and representation of economic sectors and in Figure 1: Production structure of REMIND. Linear production functions describe the conversion of primary energy (lowest level) to final energy carriers. Nested CES structures describe the aggregation of final energy carriers for end-use. ). REMIND is calibrated so that the output matches exogenous GDP projections subject to exogenous labor and final energy demand projections through an adjustment of labor productivity and energy efficiency parameters. Energy efficiencies are time, region and energy-type specific, labor productivity is time and region-specific.