Dynamic cost reduction by learning

[[email protected]]

Hi,

Can I model/introduce the dynamic cost reduction by learning (more capacity INV)? [e.g., function of cost relative to more capacity projections]

Best,
Xiao

[Antti-L]

You mean endogenous technology learning (ETL)?  If so, yes, please consult the documentation about using ETL. Introducing exogenous cost reduction trajectories based on learning rates is straightforward.
In addition, one could introduce UCs that define bounds on the investments into advanced (or NOAK) technologies based on cumulative capacities installed in previous periods.

[[email protected]]

You mean endogenous technology learning (ETL)?  If so, yes, please consult the documentation about using ETL. Introducing exogenous cost reduction trajectories based on learning rates is straightforward.
In addition, one could introduce UCs that define bounds on the investments into advanced (or NOAK) technologies based on cumulative capacities installed in previous periods.

Hi Antti,

Thank you for the reply.

Best,
Xiao