Model concept, solver and details - COFFEE-TEA
|Institution||COPPE/UFRJ (Cenergia), Brazil, http://www.cenergialab.coppe.ufrj.br/.|
|Solution concept||General equilibrium (closed economy)|
|Solution method||The COFFEE model is solved through Linear Programming (LP). The TEA model is formulated as a mixed complementary problem (MCP) and is solved through Mathematical Programming System for General Equilibrium -- MPSGE within GAMS using the PATH solver.|
The COFFEE model is based on the MESSAGE (Model for Energy Supply Strategy Alternatives and their General Environmental Impacts), an optimization software in linear programming applied for most physical balances (mass, energy, exergy and land)12. MESSAGE suits the development of bottom-up models and partial equilibrium models, with perfect foresight, sovled through Linear Programming (LP).
The TEA model is formulated as mixed complementary problem (MCP) and is solved through Mathematical Programming System for General Equilibrium -- MPSGE3 within GAMS using the PATH solver4. It assumes total market clearance (through commodity price equilibrium), zero profit condition for producers (with constant-returns-to-scale) and perfect competition to reach general equilibrium.
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- Thomas F Rutherford (1999). Applied general equilibrium modeling with MPSGE as a GAMS subsystem: An overview of the modeling framework and syntax. Computational economics, 14 (1-2), 1--46.
- Michael C. Ferris, Todd S. Munson (2000). Complementarity problems in GAMS and the PATH solver. Journal of Economic Dynamics and Control, 24 (), 165-188. http://dx.doi.org/10.1016/s0165-1889(98)00092-x