Demand elasticity

[Samaneh]

Hello,

I looked at demand elasticity scenario defined in Demo/SuppXLS folder. What are the 2 parameters, COM_VOC (MED variation of demand) and COM_step (number of demand growth) in TFM_INS table? I saw their definition in attribute table, but can you explain more about them?

Thank you,

Samaneh

~TFM_INS
TimeSlice	LimType	Attribute	Year	Cset_Set	AllRegions
	UP,LO	COM_VOC	2001	DEM	0.15
	UP,LO	COM_VOC	0	DEM	5
	UP,LO	COM_STEP		DEM	10

[wnijs]

COM_VOC is the possible variation of demand in both directions when using the elastic demand formulation. In your example, demand can change up to 15% in both directions (higher/lower demand). After that, the demand is assumed to be inelastic again.

COM_STEP is the number of steps to use for the approximation of change of producer/consumer surplus when using the elastic demand formulation. 10 steps is fine for a 15% change but if you to higher changes (for example 50%) than you need at least 20 steps.

More information on the documentation document http://www.iea-etsap.org/docs/TIMESDoc-Details.pdf

Wouter

[Samaneh]

Thanks for you response. I studied both part 1 and 2 of TIMES documentation. It was really helpful, but i have another question from that table. 15% is a demand range w.r.t. the reference case demand in 2001 and 5 is the number of steps for discretizing the demand curve. What is 5 and year 0?

Thanks,

Samaneh

[Antti-L]

Studying never ends; here is some more for you: http://www.iea-etsap.org/docs/TIMES-Interpolate.pdf 

[Samaneh]

Dear Antti,

Thanks for the documentation. So, it is related to interpolation/extrapolation rules.

[Samaneh]

Hello again,

I made an elasticity demand scenario with  the same attributes as Demo, but when i ran the model, the result was the same as base case. I wonder if I need to change any settings on VEDA_FE to run the model for elastic demand?

Thanks,

Samaneh

[Gargiulo]

Please try to follow the steps described in the attached document and let me know.

uploads/33/Elastic_demand_in_VEDA-FE.pdf

Mauri

[Samaneh]

Thanks Mauri for your response. I have a lot of constraint scenarios, but not on CO2 tax or emissions. I do have constraint on NOx and SO2 emissions. What do you mean exactly with ref scenario? can I include NOx and SO2 emissions constraint scenarios in the base case run?

Thanks,

Samaneh

[Gargiulo]

The elasticity run is based on demand prices generated in a first run (that I called Reference). if you look at the document uploaded from Antti sometimes ago I am sure you will understand the mechanism. BTW it is important to generate a different demand price between the run without and with elasticity and generally you can do this in a easy way with emission taxes or bounds.

[Gargiulo]

In attachment a pdf file with all the inofrmation you need for the elastic demand exercise

uploads/33/Training_ElasticDemand.pdf

Mauri

[Samaneh]

Thanks for all of the points and documents Maurizio. It worked in our model

Samaneh