Refactor 80_optimization/nash

modules/04_PE_FE_parameters/iea2014/declarations.gms

@@ -7,10 +7,10 @@
 *** SOF ./modules/04_PE_FE_parameters/iea2014/declarations.gms
 
 parameter
-pm_IO_input(all_regi,all_enty,all_enty,all_te)                 "Energy input based on IEA data"
+pm_IO_input(all_regi,all_enty,all_enty,all_te)                  "Energy input based on IEA data"
 p04_IO_output(all_regi,all_enty,all_enty,all_te)                "Energy output based on IEA data"
 p04_x_enty2te_dyn04(all_regi,all_enty,all_enty,all_te,all_te)   "parameter for the allocation of energy flow to technologies"
-pm_prodCouple(all_regi,all_enty,all_enty,all_te,all_enty)       "own consumption"
+pm_prodCouple(all_regi,all_enty,all_enty,all_te,all_enty)       "share of couple production. Value 0.2 means 20EJ of couple product for 100EJ of main product; value -0.03 means 3EJ of own consumption for 100EJ of main product."
 p04_aux_data(all_regi,char, all_te)                             "auxiliary parameter to store the initial mix0 and eta values for gas electricity before splitting it to ngcc and ngt (needed as long as calibration routine sets ngt to 0)"
 p04_shareNGTinGas(all_regi)                                     "Share of ngt in electricity produced from gas"
 pm_fuExtrOwnCons(all_regi, all_enty, all_enty)                  "energy own consumption in the extraction sector with first enty being the output produced and the second enty being the input required"
@@ -20,8 +20,8 @@ pm_histfegrowth(all_regi,all_enty)                              "average growth
 p04_prodCoupleGlob(all_enty,all_enty,all_te,all_enty)           "global couple products"
 
 
-p04_IO_output_beforeFix(ttot,all_regi,all_enty,all_enty,all_te)        "Energy output based on IEA data as read in from input data before correction from FE trajectories"
-p04_IO_output_beforeFix_Total(ttot,all_regi,all_enty)                         "Energy output based on IEA data as read in from input data before correction from FE trajectories summed over SE"
+p04_IO_output_beforeFix(ttot,all_regi,all_enty,all_enty,all_te) "Energy output based on IEA data as read in from input data before correction from FE trajectories"
+p04_IO_output_beforeFix_Total(ttot,all_regi,all_enty)           "Energy output based on IEA data as read in from input data before correction from FE trajectories summed over SE"
 ;
 
 *** EOF ./modules/04_PE_FE_parameters/iea2014/declarations.gms

modules/80_optimization/nash/bounds.gms

@@ -5,19 +5,18 @@
 *** |  REMIND License Exception, version 1.0 (see LICENSE file).
 *** |  Contact: [email protected]
 *** SOF ./modules/80_optimization/nash/bounds.gms
-*override fixing of vm_perm set in 41_emicapregi/none/bounds.gms
-*mlb 20150609* allow negative permits to compute efficient solution
+
+if(cm_emiscen = 6, !! budget run
 $ifthen.emiopt %emicapregi% == 'none' 
-if(cm_emiscen eq 6,
-  vm_perm.lo(t,regi) = -10;
-  vm_perm.up(t,regi) = 10000;
-);
+  vm_perm.up(t,regi) = 10000; !! override fixing of vm_perm set in 41_emicapregi/none/bounds.gms
+  vm_perm.lo(t,regi) = -10; !! mlb 20150609: allow negative permits to compute efficient solution
 $endif.emiopt
 
-*ML* in nash with permit allocation only total budgets are meaningful; allowing permit trade
-*only for the initial policy period avoids indeterminacy, hence numerical problems
-loop(ttot$(ttot.val ne cm_startyear),
-    vm_Xport.fx(ttot,regi,"perm")$(cm_emiscen eq 6) = 0;
-    vm_Mport.fx(ttot,regi,"perm")$(cm_emiscen eq 6) = 0 ;
+*** ML: in nash with permit allocation only total budgets are meaningful;
+*** allowing permit trade only for the initial policy period avoids indeterminacy, hence numerical problems
+  loop(ttot $ (ttot.val ne cm_startyear),
+    vm_Xport.fx(ttot,regi,"perm") = 0;
+    vm_Mport.fx(ttot,regi,"perm") = 0;
+  );
 );
 *** EOF ./modules/80_optimization/nash/bounds.gms

modules/80_optimization/nash/datainput.gms

@@ -5,76 +5,75 @@
 *** |  REMIND License Exception, version 1.0 (see LICENSE file).
 *** |  Contact: [email protected]
 *** SOF ./modules/80_optimization/nash/datainput.gms
-pm_w(regi) = 1;
-
-o80_trackSurplusSign(ttot,trade,iteration)$(NOT tradeSe(trade)) = 0;
 
-*MLB 20130920* initialization only
-pm_cumEff(t, regi, in) = 100;
+*** Negishi weights, not used in Nash
+pm_w(regi) = 1;
 
-*MLB 20140109* initialization of climate externality is sensitive
-pm_co2eqForeign(t, regi) = (1 - pm_shPerm(t,regi)) * pm_emicapglob(t);
-
-***convergence mode
-if(cm_nash_autoconverge gt 0,
-
-*** set max number of iterations
-cm_iteration_max = 100;
-
- if(cm_nash_autoconverge eq 1,
-***convergences thresholds - coarse 
-  p80_surplusMaxTolerance(tradePe) = 1.5 * sm_EJ_2_TWa;          !! convert EJ/yr into internal unit TWa
-  p80_surplusMaxTolerance("good") = 100/1000;                  !! in internal unit, trillion Dollar
-  p80_surplusMaxTolerance("perm") = 300 * 12/44 / 1000;                !! convert MtCO2eq into internal unit GtC
-   );
- if(cm_nash_autoconverge eq 2,
-***convergences thresholds - fine 
-  p80_surplusMaxTolerance(tradePe) = 0.3 * sm_EJ_2_TWa;          !! convert EJ/yr into internal unit TWa
-  p80_surplusMaxTolerance("good") = 20/1000;                  !! in internal unit, trillion Dollar
-  p80_surplusMaxTolerance("perm") = 70 * 12/44 / 1000 ;                !! convert MtCO2eq into internal unit GtC
-   );
- if(cm_nash_autoconverge eq 3,
-***convergences thresholds - very coarse 
-  p80_surplusMaxTolerance(tradePe) = 2* 1.5 * sm_EJ_2_TWa;          !! convert EJ/yr into internal unit TWa
-  p80_surplusMaxTolerance("good") = 2* 100/1000;                  !! in internal unit, trillion Dollar
-  p80_surplusMaxTolerance("perm") = 2* 300 * 12/44 / 1000;                !! convert MtCO2eq into internal unit GtC
-   );
+*** convergence with trade surplus thresholds
+if(cm_nash_autoconverge > 0,
+  cm_iteration_max = 100; !! set max number of iterations
+
+*** default values for cm_nash_autoconverge = 1 - coarse 
+  p80_surplusMaxTolerance(tradePe) = 1.5 * sm_EJ_2_TWa; !! 1.5 EJ/yr, converted into internal unit TWa
+  p80_surplusMaxTolerance("good") = 0.1;                !! 0.1 trillion Dollar
+  p80_surplusMaxTolerance("perm") = 350 * 12/44 / 1000; !! 350 MtCO2eq, converted into internal unit GtC
+
+  loop(trade $ (tradePe(trade) or tradeMacro(trade)),
+*** convergences thresholds - fine
+    p80_surplusMaxTolerance(trade) $ (cm_nash_autoconverge = 2) = 0.2 * p80_surplusMaxTolerance(trade);
+*** convergences thresholds - very coarse
+    p80_surplusMaxTolerance(trade) $ (cm_nash_autoconverge = 3) = 2 * p80_surplusMaxTolerance(trade);
+  );
 );
-
 
-*Nash adjustment costs. Involves a trade-off: If set too low, markets jump far away from clearance. Set too high, changes in trade patten over iterations are very slow, convergence takes many many iterations. Default value around 150
+*** --------------- Technical parameters for Nash price algorithm ---------------
+
+*** Nash adjustment costs (default value around 150).
+*** Multiplicator to penalise trade patterns deviations from the last iteration. Involves a trade-off:
+*** - if too low, markets jump far away from clearance.
+*** - if too high, changes in trade patten over iterations are very slow, convergence takes many many iterations.
 p80_etaAdj(tradePe) = 80; 
 p80_etaAdj("good") = 100;
 p80_etaAdj("perm") = 10;
 
-*LB* parameter for nash price algorithm within the optimization. 
+*** LB: parameter for nash price algorithm within the optimization. 
+*** Multiplicator to price anticipation
 p80_etaXp(tradePe) = 0.1;
 p80_etaXp("good") = 0.1;
 p80_etaXp("perm") = 0.2;
 
-*LB* parameter for Nash price algorithm between different iterations
-p80_etaLT(trade) = 0;
-p80_etaLT("perm") = 0.03;
 
-***These parameters are pretty sensitive. If market surpluses diverge, try higher values (up to 1). If surpluses oscillate, try lower values. 
+*** LB: parameter for Nash price algorithm between different iterations. These parameters are pretty sensitive:
+*** - if market surpluses diverge, try higher values (up to 1).
+*** - if surpluses oscillate, try lower values. 
+
+*** short term price ajustment elasticity
 p80_etaST(tradePe) = 0.3;
+p80_etaST("pebiolc") = 0.8; !! AJS: bio market seems to like this
+p80_etaST("peur") = 0.2; !! uranium market is more sensitive, so choose lower etaST
 p80_etaST("good") = 0.25;
 p80_etaST("perm") = 0.3;
+$ifi %banking% == "banking"  p80_etaST("perm") = 0.2;    !! in banking mode, the permit market reacts more sensitively.
+$ifi %emicapregi% == "budget"  p80_etaST("perm") = 0.25; !! in budget mode, the permit market reacts more sensitively.
 
-$ifi %banking% == "banking"  p80_etaST("perm") = 0.2;      !! in banking mode, the permit market reacts more sensitively.
-$ifi %emicapregi% == "budget"  p80_etaST("perm") = 0.25;      !! in budget mode, the permit market reacts more sensitively.
+*** long term price ajustment elasticity
+p80_etaLT(trade) = 0;
+p80_etaLT("perm") = 0.03;
 
-*AJS* bio market seems to like this:
-p80_etaST("pebiolc") = 0.8;
-***peur market is more sensitive, so choose lower etaST
-p80_etaST("peur") = 0.2;
 
+*** --------------- Initialise convergence process parameters ---------------
 s80_converged = 0;
 
-***initialize some convergence process parameters
 s80_fadeoutPriceAnticipStartingPeriod = 0;
 sm_fadeoutPriceAnticip = 1;
-*AJS*technical stuff. We want GAMS to import values for the following variables/parameters from the gdx, it would not do that unless you set them a (any) value beforehand.
+
+*** parameter for spillover externality (aggregated productivity level)
+pm_cumEff(t, regi, in) = 100;
+
+*** auxiliary parameter to track how long the surplus for an item (ttot, trade) had the same sign over iterations
+o80_trackSurplusSign(ttot,trade,iteration) $ (not tradeSe(trade)) = 0;
+
+*** AJS: need to set (any) values for the following variables/parameters so that GAMS imports them from the gdx
 pm_pvp(ttot,trade)$(ttot.val ge 2005) = NA;
 p80_pvpFallback(ttot,trade)$(ttot.val ge 2005) = NA;
 pm_Xport0(ttot,regi,trade)$(ttot.val ge 2005) = NA;
@@ -95,21 +94,23 @@ pm_capCumForeign(ttot,regi,teLearn)$(ttot.val ge 2005)=0;
 qm_co2eqCum.m(regi) = 0;
 q80_budgetPermRestr.m(regi) = 0;
 
-***read in price paths as fallback option
-***p80_pvpFallback(ttot,trade) = 0;
+*** read in price paths as fallback option
+*** p80_pvpFallback(ttot,trade) = 0;
 $include "./modules/80_optimization/nash/input/prices_NASH.inc";
 
-***EMIOPT------------------------------------------------------------------------------
-if ( cm_emiscen eq 6,
+*** --------------- Emissions initialisation ---------------
+*** emissions, which are part of the climate policy, of other regions (nash relevant)
+*** MLB 20140109: initialisation of climate externality is sensitive
+pm_co2eqForeign(t, regi) = (1 - pm_shPerm(t,regi)) * pm_emicapglob(t); !! (1 - emission permit shares) * global emission cap
+
 $ifthen.emiopt %emicapregi% == "none"
-*AJS* initialize
+if (cm_emiscen = 6, !! budget
   p80_eoMargEmiCum(regi) = 0;
   p80_eoMargPermBudg(regi) = 0;
-*** ML 20150609 * initialization of permit budget shares (emiopt version, no permit trade)
-*** convergence sensitive to initial allocation
-*** ML 20161808 * If you change pm_shPerm, ensure that sum(regi, pm_shPerm) = 1; otherwise, a mismatch between global 
+*** ML 20150609: initialisation of permit budget shares (emiopt version, no permit trade), convergence sensitive to initial allocation
+*** ML 20161808: If you change pm_shPerm, ensure that sum(regi, pm_shPerm) = 1; otherwise, a mismatch between global 
 *** and regional budgets will likely disturb results in runs with iterative adjustment
-   pm_shPerm("2050",regi) = pm_pop("2050",regi)/ sum(regi2, pm_pop("2050",regi2) );  
-$endif.emiopt
+  pm_shPerm("2050",regi) = pm_pop("2050",regi) / sum(regi2, pm_pop("2050",regi2));  
 );
+$endif.emiopt
 *** EOF ./modules/80_optimization/nash/datainput.gms