About Val_flo

[Ryo Ishida]

Dear all

I would like to ask you a question about the attribute "Val_flo".
The manual states that the market size of input and output in the process is shown.
Does it mean that the total Val_flo of the input commodity is shown? And are these the total variable costs of all downstream?

thank you in advance.

Ryo

[Antti-L]

> The manual states that the market size of input and output in the process is shown.

From the documentation:
VAL_FLO (r,v,t,p,c)
Val_Flo – Annual commodity flow values:
Flows of process (p) multiplied by the commodity balance marginals of those commodities ( c) in period (t); the values can be interpreted as the market values of the process inputs and outputs.

> Does it mean that the total Val_flo of the input commodity is shown?
No, the reporting parameter shows the values of the process flows, as explained above: "Flows of process multiplied by the commodity balance marginals of those commodities". The total value of a commodity market in a region and year could be obtained by summing up the Val_Flo values of that commodity over the inputs to all processes (or over the outputs from all processes) in that region and year.

For the input flows the values are normally positive (≈input expenses), and for the outputs products they are normally negative (≈output revenues).

> And are these the total variable costs of all downstream?
No, they are not costs, but market values based on the equilibrium prices. But those values would indeed normally cover all downstream costs (and also producers' surpluses), including investment, fixed and variable costs, taxes, and investors return on capital.