Residential and commercial sectors - GCAM
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|Institution||Pacific Northwest National Laboratory, Joint Global Change Research Institute (PNNL, JGCRI), USA, http://www.globalchange.umd.edu.|
|Solution concept||General equilibrium (closed economy)GCAM solves all energy, water, and land markets simultaneously|
|Solution method||Recursive dynamic solution method|
|Anticipation||GCAM is a dynamic recursive model, meaning that decision-makers do not know the future when making a decision today. After it solves each period, the model then uses the resulting state of the world, including the consequences of decisions made in that period - such as resource depletion, capital stock retirements and installations, and changes to the landscape - and then moves to the next time step and performs the same exercise. For long-lived investments, decision-makers may account for future profit streams, but those estimates would be based on current prices. For some parts of the model, economic agents use prior experience to form expectations based on multi-period experiences.|
GCAM disaggregates the building sector into residential and commercial sectors and models three aggregate services (heating, cooling, and other). Within each region, each type of building and each service starts with a different mix of fuels supplying energy. The future evolution of building energy use is shaped by changes in (1) floorspace, (2) the level of building service per unit of floorspace, and (3) fuel and technology choices by consumers. Floorspace depends on population, income, and exogenously specified satiation levels. The level of building service demands per unit of floorspace depend on climate, building shell conductivity, income, and satiation levels. See the section on buildings for more information.