Energy resource endowments - WITCH
|Model Documentation - WITCH|
|Institution||European Institute on Economics and the Environment (RFF-CMCC EIEE), Italy, http://www.eiee.org.|
|Solution concept||General equilibrium (closed economy)|
The price of fossil fuels and exhaustible resources (oil, gas, coal and uranium) is also endogenously determined by the marginal cost of extraction, which in turn depends on current and cumulative extraction, plus a regional mark-up to mimic different regional costs. The prices of fossil fuels and exhaustible resources have been revised upwards, following the sharp increases in the market prices between 2002 and 2005. Base year prices have been calibrated following Enerdata (2008), IEA (2007) and EIA (2008). The 2005 international prices for exhaustible resources are set at:
- 55 US$/bbl for oil, or roughly 8US$/GJ
- 7.14 US$/GJ for natural gas
- 60 US$/ton for coal, equivalent to 2 US$/GJ. In order to match the large difference in price increases shown in the Enerdata database, we adjust the mark-up prices
- Uranium ore price tripled from 2002 to 2005, and we thus update to this new level. The cost of conversion was increased from 5 US$/kg to 11 US$/kg, while enrichment costs stayed roughly constant. We thus slightly increased the cost of conversion and enrichment from 221 to 230 1995 US$/kg.
Country specific mark-ups are set to reproduce regional figures from IEA (2007). Concerning bioenergies, biofuels supply curves are exogenously set. They have been computed from the outcomes of the GLOBIOM model.