Demand response from macro to times

[shivika]

I m using TIAM-MACRO model to assess the macroeconomic implications of climate policies. Is there any way to constraint the maximum permissible demand change between non-climate policy scenario and stringent climate mitigation scenario ? 

[Antti-L]

Not really, by design the demands should be able to react according to the substitution elasticities under price changes. You could try using a lower elasticity (TM_ESUB).  Of course, you could also try putting some bounds on demands, but I am not at all sure the formulation would then behave correctly.

However, remember also that Macro works well only with well-behaving demand prices. If you see some steep changes in demands, that may be because of bad price behaviour, which may often be caused by dummy imports, if you have enabled them. Dummy imports should therefore never be enabled with Macro (neither in the Baseline calibration run nor policy runs).