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Model Documentation - COFFEE-TEA

Corresponding documentation
Previous versions
Model information
Model link
Institution COPPE/UFRJ (Cenergia), Brazil,
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.

In the TEA model, international trade follows an Armington's aggregation1, in which a composite CES function differentiate consumer's preferences between imported and domestic goods.

In the COFFEE model, international trade of energy and agriculture commodities is explicitely represented. Partial equilibrium is reached in a minimun cost basis, whereas trade between regions is part of the solution.


  1. ^  | |  Paul S Armington (1969). A theory of demand for products distinguished by place of production. Staff Papers, 16 (1), 159-178.