Course: Exploring Possible Futures: Modeling in Environmental and Energy Economics

In the previous step you have learned that the choice of your model design will largely depend on your underlying problem, but also that some model approaches are exchangeable and …

By now you have learned about system perspectives and how to build optimization models, and practiced with your first bottom-up energy system model. You followed the explanation of basic building …

This has been a challenging week. We have moved away from the system perspective with a central planning (you have decided which technologies are to be used in the models …

Let us now have a brief look at the details of the model. The building blocks for describing firm behaviour and demand have remained unchanged. We still employ the equations …

Contrary to an optimization problem, an equilibrium model has no objective but consists of the respective conditions that need to hold when the market or system is in equilibrium, meaning …

Up to now, we did not really have a look at markets! Your first models were following a system perspective with either you deciding about optimal investments and operation strategies …

Economic models consist of building blocks. In addition to these blocks, you will need three more types of building blocks for your construction: consumer behaviour markets natural environment These blocks …

We have now discussed models of firm behaviour in detail. To close this discussion, it is helpful to make some general observations. First, you have seen that there are variables …

In general, many economic models consist of a small number of standard building blocks. These standard building blocks are parts of a model that are well understood and that have …

This week we focused on model designs from a system perspective. Using our energy system example, we gradually extended the included elements to end up with a full optimization model. …

One important aspect when designing a model is to determine which variables are exogenous and which are endogenous. This determination is directly followed by the question of which is the …

Let us now have a somewhat more detailed look at the model that you have used two steps ago. On the surface, this model looks rather similar to the models …

Real world problems often come with more than one important criterion we want to consider. If we want to account for those complex decisions we need concepts that help us …