Capital and labour markets - COFFEE-TEA

Note: The documentation of COFFEE-TEA is 'under review' and is not yet 'published'!

Model Documentation - COFFEE-TEA
Model scope and methods - COFFEE-TEA Model concept, solver and details - COFFEE-TEA Temporal dimension - COFFEE-TEA Spatial dimension - COFFEE-TEA Macro-economy - COFFEE-TEA Production system and representation of economic sectors - COFFEE-TEA Capital and labour markets - COFFEE-TEA Monetary instruments - COFFEE-TEA Trade - COFFEE-TEA Technological change - COFFEE-TEA Energy - COFFEE-TEA Energy resource endowments - COFFEE-TEA Fossil energy resources - COFFEE-TEA Uranium and other fissile resources - COFFEE-TEA Bioenergy - COFFEE-TEA Non-biomass renewables - COFFEE-TEA Energy conversion - COFFEE-TEA Electricity - COFFEE-TEA Heat - COFFEE-TEA Gaseous fuels - COFFEE-TEA Liquid fuels - COFFEE-TEA Solid fuels - COFFEE-TEA Grid, pipelines and other infrastructure - COFFEE-TEA Energy end-use - COFFEE-TEA Transport - COFFEE-TEA Residential and commercial sectors - COFFEE-TEA Industrial sector - COFFEE-TEA Other end-use - COFFEE-TEA Energy demand - COFFEE-TEA Technological change in energy - COFFEE-TEA Land-use - COFFEE-TEA Agriculture - COFFEE-TEA Forestry - COFFEE-TEA Land-use change - COFFEE-TEA Bioenergy land-use - COFFEE-TEA Other land-use - COFFEE-TEA Agricultural demand - COFFEE-TEA Technological change in land-use - COFFEE-TEA Emissions - COFFEE-TEA GHGs - COFFEE-TEA Pollutants and non-GHG forcing agents - COFFEE-TEA Carbon dioxide removal (CDR) options - COFFEE-TEA Climate - COFFEE-TEA Modelling of climate indicators - COFFEE-TEA Climate damages, temperature changes - COFFEE-TEA Non-climate sustainability dimension - COFFEE-TEA Air pollution and health - COFFEE-TEA Water - COFFEE-TEA Other materials - COFFEE-TEA Other sustainability dimensions - COFFEE-TEA Appendices - COFFEE-TEA Mathematical model description - COFFEE-TEA Data - COFFEE-TEA References - COFFEE-TEA
Corresponding documentation
AIM-Hub BLUES C3IAM COFFEE-TEA DNE21+ GEM-E3 GRACE IMACLIM PROMETHEUS
Previous versions
Archive of COFFEE-TEA version v1
Model information
Model link
Institution	COPPE/UFRJ (Cenergia), Brazil, http://www.cenergialab.coppe.ufrj.br/.
Solution concept	General equilibrium (closed economy)
Solution method	The COFFEE model is solved through Linear Programming (LP). The TEA model is formulated as a mixed complementary problem (MCP) and is solved through Mathematical Programming System for General Equilibrium -- MPSGE within GAMS using the PATH solver.
Anticipation

In the TEA model, the macroeconomic closure assumes full employment of the factors of production (capital and labour). Savings equals investment in the general equilibrium, but regionally the imbalances are closed by a surplus (or deficit) in the current account. An endogenous real exchange rate clears the current accounts and the capital account decreases exougenously in the long-run. Capital stock evolves at each period with the formation of new capital that depends on the investment level in that period and the capital depreciation rate, as described in <xr id="eqn:TEA_eq1"/>.

<equation id="eqn:TEA_eq1"> $K{_{r,t}}=I{_{r,t}}+(1-\delta {_{r}})K{_{r,t-1}}$ </equation>

where: $K{_{r,t}}$ is the capital stock in region r and time t; $I{_{r,t}}$ is the investment in new capital goods in region r and time t; $\delta {_{r}}$ is the depreciation rate of capital in region r.

In the COFFEE model, capital and labour are represented throught technological parameters, such as capital expenditures (CAPEX) and operational and maintenance expenditures (OPEX).