Economic activity - WITNESS
Economic activity is directly processed in the Macro-economy model (see specific documentation), with the Net Productivity (function of capital, energy, labor and minored by damages) minus Investments (including investments for energy production, carbon capture…) define Consumptions (all what is produced and not used for investment is consumed).
In a similar way to DICE, an utility model is used for optimization, but with a slightly different implementation adding an energy price effect.
For sectorization, WITNESS follow the International Standard Industrial Classification (ISIC) comprehensive classification of economic activities developed by the United Nations.
As of summer '24, mechanisms for sectorization are in place and applied to first sectorization level : agriculture, industry, and services (more details here)
For each of them, an econometric subdivision is implemented for several sub-sectors, than will enable to perform back to back models calibration on past data while macro-economic subsectors models will be developed.
For regional aspects, the GDP distribution model is a predictive model developed to estimate the distribution of Gross Domestic Product (GDP) adjusted to Purchasing Power Parity (PPP) among different countries over time.
The Macro-Economy model is that way aiming to provide insights into the future GDP-PPP adjusted distribution based on the computed GDP-PPP adjusted in the macroeconomics discipline.
Note: The documentation of WITNESS is 'in preparation' and is not yet 'published'!| Corresponding documentation | |
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| Previous versions | |
| No previous version available | |
| Model information | |
| Model link | |
| Institution | Open-Source for Climate (OS-C), N/A, https://os-climate.org/transition-analysis/., Linux Foundation (LF), N/A, https://www.linuxfoundation.org/. |
| Solution concept | Systems dynamics based approach |
| Solution method | OptimizationSimulation-based optimization |
| Anticipation | |