Model concept, solver and details - POLES
|Institution||JRC - Joint Research Centre - European Commission (EC-JRC), Belgium, http://ec.europa.eu/jrc/en/.|
|Solution concept||Partial equilibrium (price elastic demand)|
|Solution method||SimulationRecursive simulation|
POLES is a recursive dynamic simulation model. Variables are either calculated directly or are calculated based on the previous years' values, to which are applied the evolution of explanatory variables.
The economic decisions (investment and utilisation rate) are based on the current state of knowledge of parameters (costs of technologies, prices, ...) or with a myopic anticipation of future costs and constraints for the agent, also considering vintage, resource potentials and other inertia.
The model does not use foresight but rather myopic anticipation. Some foresight can be forced by using alternative runs as input files.
The model is developed on the Vensim software.