Policy - DNE21+
|Research Institute of Innovative Technology for the Earth (RITE), Japan, http://www.rite.or.jp/en/.
Based on the scenario setup, energy- and climate-related policies are explicitly represented in DNE21+. This includes carbon pricing, emission cap and trade system, carbon tax, preferred tax on specific energy sources, fuel subsidies, fuel standards and energy standards. In general, these policies are implemented via constraints or a price mark-up on energy sources.
When any emission restrictions (e.g., upper limit of emissions, emissions reduction targets, specific unit improvement goals, carbon taxes) are applied, the model finds out the energy systems whose costs are minimized, meeting all the assumed requirements, given the sectoral amounts of production activities (e.g., crude steel and cement), the amount of service activities (e.g., the traffic amount in the transportation sector), the final energy demand in other sectors and the performances and the facility costs of various technologies.