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Own-price elastic supply curve
#1
Dear All,

I would like to ask for your experience and a little help defining supply curve using own-price elasticity rather than different technologies.

The reason we would like to use this (more like a top-down approach) method is that our team is considering to model several industry sectors, however some of those are quite heterogeneous and therefore data intensive. 

Moreover, due to the lack of time we have, we would like to model the supply-side of these sectors by not defining any technologies (and their cost and technology parameters), but rather considering the technological change as a change in the fuel mix for the given sector. Therefore, we would take into account the fuel costs of the relevant energy carriers as building blocks of the short-run supply curve and aggregate these blocks into one final supply curve.  

As quantity "range" (defined by a minimum and a maximum value for an energy carrier as quantity demanded - horizontal axis of the inverse supply curve) for any energy carrier we would provide parameters exogenously (similarly to the own-price elastic demand curve method and based on previous energy balances for Hungary). 

My question would be if any of you have met the same challenge and - if you would be kind to share - what were your solutions? Also, do you find this method possible to insert in TIMES?

I have read Antti's paper from 2010 on "Elastic supply cost curves in TIMES" and the related "Appendix B Damage Cost Functions" part from the "Documentation for the TIMES model - Part II", which I found very useful and thank you for those. However, if it is possible, could you please provide an example from TIMES that you have been worked with before, in order to be able to see how it looks in "real life"? Smile 

Thank you very much for your answer and help in advance! 
Any help is very much appreciated!   

Best regards,
Viktor
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#2
I am not sure what kind of an example you are looking for, but I just tested the example given in the note on Elastic Supply curves, using an exogenously specified Base price (defined by DAM_COST(r,y,c,cur)) and Base quantity (DAM_BQTY(r,c)), and it worked well.  So, at least the example given in that note is a working example, which just has to be supplemented with the Base price and Base quantity when these are exogenous. In VEDA the limitation is that VEDA only supports DAM_BQTY for defining the Base quantity and it has no year index.

It is of course possible to model such supply curves manually, by introducing a process (or a process flow) for each step of the curve. I have a vague feeling that Amit Kanudia (the main VEDA designer) may have done some automation for creating such under VEDA.
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