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Fiscal neutral bonus and malus
#1
Dear all,

I am trying to introduce system of taxes and subsidies on purchase of new cars. The goal is the system is fiscal neutral, i.e. sum of taxes is equal to sum of subsidies.

I have tried to used user constrain as it is Scen_CZ_Car-sub.xls in in the attachment, but the model terminates.

Could you please advice me, how to create such a system?

Is it possible to create a variable, that will be demendent on newly installed capacity of a proces?


Thand you very much.


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.zip   T_CARS.zip (Size: 859.86 KB / Downloads: 6)
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#2
I am not sure what you mean by creating a variable that will be dependent on newly installed capacity of a process. The TIMES VAR_NCAP variable already does represent the newly installed capacity of a process, and with UC_NCAP you can multiply it with any coefficient in a user constraint, as in the example in shown below.



The constraint UC_CAR_SUB defined above forces the investment subsidies on electric cars to be equal to the investment taxes on non-electric cars in 2020, in WEU.


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#3
Dear Antti,

thank you. I have not found the meaning of SYNC before.
I have tried your solutuion, the model works, but a little bit strange.
There is inslanstalled no new electric car in the model, but the taxes on non-electric cars are levied.

Can I see the absolute value of the taxes and subidies in the results? The attribute Cost_Invx shows the annualized taxes and subsidies, is it right?


By creating a variable that will be dependent on newly installed capacity of a process I ment a commodity that would input to another virtual process. It was my idea how to create a proxy to estimate the optimal level of tax and subsidy, but now I thing such a problem is solvable in TIMES.


Attached Files
.zip   T_CARS.1.zip (Size: 980.47 KB / Downloads: 5)
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#4
Well, as far as I can see, you have not exactly tried my solution, but your own solution.

You are defining UC_ATTR(NCAP,NCAP_ISUB) on the LHS, and UC_ATTR(NCAP,NCAP_ITAX) on the RHS.
I was defining UC_ATTR(NCAP,SUB) on the RHS, and UC_ATTR(NCAP,TAX) on the LHS.

I hope you can see that it makes a difference: You are defining zero coefficients for the electric cars, because the UC_NCAP=1 coefficients for them are on the RHS, but they are multiplied by the taxes, and the taxes are zero for electric cars. Similarly, you are also defining zero coefficients for the non-electric cars (on the LHS), because you multiply them with the subsidies, which are zero for them. So, in your solution all the coefficients are zero.

But yes, you are right that Cost_Invx shows the annualized taxes and subsidies.
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#5
(15-09-2016, 09:39 PM)Antti-L Wrote: Well, as far as I can see, you have not exactly tried my solution, but your own solution.

You are defining UC_ATTR(NCAP,NCAP_ISUB) on the LHS, and UC_ATTR(NCAP,NCAP_ITAX) on the RHS.
I was defining UC_ATTR(NCAP,SUB) on the RHS, and UC_ATTR(NCAP,TAX) on the LHS.

I hope you can see that it makes a difference: You are defining zero coefficients for the electric cars, because the UC_NCAP=1 coefficients for them are on the RHS, but they are multiplied by the taxes, and the taxes are zero for electric cars. Similarly, you are also defining zero coefficients for the non-electric cars (on the LHS), because you multiply them with the subsidies, which are zero for them. So, in your solution all the coefficients are zero.

But yes, you are right that Cost_Invx shows the annualized taxes and subsidies.

Thank you,

you are right. Sorry for my mistake. Now it works nice Smile
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